Is Phibro Animal Health Corporation's (NASDAQ:PAHC) 7.6% ROE Worse Than Average?
Is Phibro Animal Health Corporation's (NASDAQ:PAHC) 7.6% ROE Worse Than Average?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Phibro Animal Health Corporation (NASDAQ:PAHC), by way of a worked example.
儘管一些投資者已經精通財務指標（帽子提示），但本文適合那些想了解股本回報率（ROE）及其重要性的人。我們將使用ROE來檢查Phibro Animal Health Corporation（納斯達克股票代碼：PAHC），舉一個實例。
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
股本回報率或投資回報率是股東需要考慮的重要因素，因爲它可以告訴他們資本再投資的有效性。換句話說，它是衡量公司股東提供的資本回報率的盈利比率。
See our latest analysis for Phibro Animal Health
查看我們對 Phibro 動物健康的最新分析
How Is ROE Calculated?
ROE 是如何計算的？
ROE can be calculated by using the formula:
ROE 可以通過以下公式計算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤（來自持續經營業務）÷ 股東權益
So, based on the above formula, the ROE for Phibro Animal Health is:
因此，根據上述公式，Phibro Animal Health 的投資回報率爲：
7.6% = US$21m ÷ US$273m (Based on the trailing twelve months to September 2023).
7.6% = 2100萬美元 ¥2.73億美元（基於截至2023年9月的過去十二個月）。
The 'return' is the profit over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.08 in profit.
“回報” 是過去十二個月的利潤。這意味着，公司每獲得價值1美元的股東權益，就會產生0.08美元的利潤。
Does Phibro Animal Health Have A Good Return On Equity?
Phibro Animal Health 有良好的股本回報率嗎？
One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As shown in the graphic below, Phibro Animal Health has a lower ROE than the average (11%) in the Pharmaceuticals industry classification.
確定一家公司是否具有良好的股本回報率的一種簡單方法是將其與行業的平均水平進行比較。這種方法的侷限性在於，有些公司與其他公司有很大不同，即使屬於相同的行業分類也是如此。如下圖所示，Phibro Animal Health的投資回報率低於製藥行業分類中的平均水平（11％）。
That's not what we like to see. That being said, a low ROE is not always a bad thing, especially if the company has low leverage as this still leaves room for improvement if the company were to take on more debt. A company with high debt levels and low ROE is a combination we like to avoid given the risk involved. To know the 3 risks we have identified for Phibro Animal Health visit our risks dashboard for free.
這不是我們喜歡看到的。話雖如此，較低的投資回報率並不總是一件壞事，尤其是在公司的槓桿率較低的情況下，因爲如果公司承擔更多債務，這仍有改善的餘地。考慮到所涉及的風險，我們希望避免將高債務水平和低投資回報率的公司結合起來。要了解我們爲 Phibro Animal Health 確定的三種風險，請免費訪問我們的風險控制面板。
How Does Debt Impact ROE?
債務如何影響投資回報率？
Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
幾乎所有公司都需要資金來投資該業務，以增加利潤。這些現金可以來自留存收益、發行新股（股權）或債務。在第一種和第二種情況下，投資回報率將反映現金用於業務投資的這種用途。在後一種情況下，增長所需的債務將提高回報，但不會影響股東的權益。因此，隱喻地說，債務的使用可以提高投資回報率，儘管在暴風雨天氣下還會帶來額外的風險。
Combining Phibro Animal Health's Debt And Its 7.6% Return On Equity
將 Phibro Animal Health 的債務及其7.6％的股本回報率相結合
Phibro Animal Health clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.77. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
Phibro Animal Health顯然使用大量債務來提高回報，因爲它的負債權益比率爲1.77。即使使用了大量債務，它的投資回報率也相當低；在我們看來，這不是一個好結果。投資者應該仔細考慮如果一家公司無法如此輕易地借款，它會如何表現，因爲信貸市場確實會隨着時間的推移而變化。
Summary
摘要
Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. All else being equal, a higher ROE is better.
股本回報率對於比較不同業務的質量很有用。能夠在沒有債務的情況下實現高股本回報率的公司可以被視爲高質量的企業。在其他條件相同的情況下，更高的投資回報率更好。
But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So I think it may be worth checking this free report on analyst forecasts for the company.
但是，當企業質量很高時，市場通常會以反映這一點的價格對其進行出價。重要的是要考慮其他因素，例如未來的利潤增長以及未來需要多少投資。因此，我認爲可能值得查看這份關於分析師對公司的預測的免費報告。
Of course Phibro Animal Health may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.
當然，Phibro Animal Health 可能不是最值得買入的股票。因此，您可能希望看到這份免費收藏的其他投資回報率高、債務低的公司。
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論，我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議，也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意，我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之，華爾街沒有持有任何上述股票的頭寸。