Kidswant Children ProductsLtd (SZSE:301078) Is Reinvesting At Lower Rates Of Return
Kidswant Children ProductsLtd (SZSE:301078) Is Reinvesting At Lower Rates Of Return
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. However, after briefly looking over the numbers, we don't think Kidswant Children ProductsLtd (SZSE:301078) has the makings of a multi-bagger going forward, but let's have a look at why that may be.
如果我们想要找到一只可以长期成倍增长的股票，我们应该寻找什么潜在趋势？理想情况下，一家企业将呈现两种趋势；第一，增长退货关于已使用资本(ROCE)，第二，增加金额已动用资本的比例。简而言之，这些类型的企业是复利机器，这意味着它们不断地以越来越高的回报率对收益进行再投资。然而，在简单地看了一下数字之后，我们认为儿童用品有限公司(SZSE：301078)具备了未来实现多个袋子的条件，但让我们来看看为什么会这样。
Return On Capital Employed (ROCE): What Is It?
资本回报率(ROCE)：它是什么？
If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. To calculate this metric for Kidswant Children ProductsLtd, this is the formula:
如果你以前没有使用过ROCE，它衡量的是一家公司从业务资本中获得的“回报”(税前利润)。要计算Kidswant Child ProductsLtd.的此指标，公式如下：
Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)
已动用资本回报率=息税前收益(EBIT)？(总资产-流动负债)
0.027 = CN¥140m ÷ (CN¥7.4b - CN¥2.2b) (Based on the trailing twelve months to June 2023).
0.027=1.4亿加元？(74亿加元-22亿加元)(根据截至2023年6月的往绩12个月计算)。
Thus, Kidswant Children ProductsLtd has an ROCE of 2.7%. Ultimately, that's a low return and it under-performs the Consumer Retailing industry average of 6.2%.
因此，Kidswant Child ProductsLtd的净资产收益率为2.7%。归根结底，这是一个很低的回报率，而且它的表现低于消费者零售业6.2%的平均水平。
See our latest analysis for Kidswant Children ProductsLtd
查看我们对儿童用品有限公司的最新分析
Above you can see how the current ROCE for Kidswant Children ProductsLtd compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Kidswant Children ProductsLtd here for free.
上面你可以看到Kidswant Child ProductsLtd.目前的净资产收益率与其之前的资本回报率相比如何，但你只能从过去知道这么多。如果你愿意，你可以在这里查看报道Kidswant Child ProductsLtd的分析师对免费的。
How Are Returns Trending?
回报趋势如何？
On the surface, the trend of ROCE at Kidswant Children ProductsLtd doesn't inspire confidence. To be more specific, ROCE has fallen from 12% over the last five years. Meanwhile, the business is utilizing more capital but this hasn't moved the needle much in terms of sales in the past 12 months, so this could reflect longer term investments. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line.
从表面上看，Kidswant儿童用品有限公司的ROCE趋势并没有激发人们的信心。更具体地说，ROCE在过去五年中从12%下降。与此同时，该公司正在利用更多资本，但这在过去12个月的销售额方面没有太大变化，因此这可能反映了较长期的投资。从现在开始，值得密切关注该公司的收益，看看这些投资最终是否真的为利润做出了贡献。
On a related note, Kidswant Children ProductsLtd has decreased its current liabilities to 30% of total assets. So we could link some of this to the decrease in ROCE. Effectively this means their suppliers or short-term creditors are funding less of the business, which reduces some elements of risk. Some would claim this reduces the business' efficiency at generating ROCE since it is now funding more of the operations with its own money.
与此相关的是，Kidswant Children ProductsLtd已将目前的负债降至总资产的30%。因此，我们可以将其中一些因素与净资产收益率的下降联系起来。实际上，这意味着它们的供应商或短期债权人减少了对业务的融资，这降低了一些风险因素。一些人会说，这降低了企业产生净资产收益率的效率，因为它现在用自己的钱为更多的运营提供资金。
In Conclusion...
总之..。
Bringing it all together, while we're somewhat encouraged by Kidswant Children ProductsLtd's reinvestment in its own business, we're aware that returns are shrinking. And in the last year, the stock has given away 20% so the market doesn't look too hopeful on these trends strengthening any time soon. Therefore based on the analysis done in this article, we don't think Kidswant Children ProductsLtd has the makings of a multi-bagger.
综上所述，虽然我们对Kidswant Child ProductsLtd对自己业务的再投资多少有些鼓舞，但我们意识到回报正在缩水。去年，该股下跌了20%，因此市场看起来对这些趋势不会很快走强抱太大希望。因此，根据本文所做的分析，我们认为Kidswant儿童用品有限公司不具备多管齐下的条件。
One more thing to note, we've identified 2 warning signs with Kidswant Children ProductsLtd and understanding them should be part of your investment process.
还有一件事需要注意，我们已经确定了2个警告标志与Kidswant Child ProductsLtd合作，了解他们应该是你投资过程的一部分。
For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity.
对于那些喜欢投资于稳固的公司，看看这个免费资产负债表稳健、股本回报率高的公司名单。
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本文由Simply Wall St.撰写，具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论，我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议，也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意，我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。