Is Sichuan Road & Bridge Co.,Ltd's (SHSE:600039) ROE Of 23% Impressive?
Is Sichuan Road & Bridge Co.,Ltd's (SHSE:600039) ROE Of 23% Impressive?
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. To keep the lesson grounded in practicality, we'll use ROE to better understand Sichuan Road & Bridge Co.,Ltd (SHSE:600039).
尽管一些投资者已经精通财务指标（帽子提示），但本文适用于那些想了解股本回报率（ROE）及其重要性的人。为了使课程以实用为基础，我们将使用投资回报率来更好地了解四川路桥股份有限公司。, Ltd（上海证券交易所股票代码：600039）。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回报率或投资回报率是对公司增值和管理投资者资金的有效性的考验。换句话说，它揭示了公司成功地将股东投资转化为利润。
How Do You Calculate Return On Equity?
你如何计算股本回报率？
ROE can be calculated by using the formula:
ROE 可以通过以下公式计算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润（来自持续经营业务）÷ 股东权益
So, based on the above formula, the ROE for Sichuan Road & BridgeLtd is:
因此，根据上述公式，四川路桥有限公司的投资回报率为：
23% = CN¥12b ÷ CN¥50b (Based on the trailing twelve months to September 2023).
23% = 120亿元人民币 ÷ 50亿元人民币（基于截至2023年9月的过去十二个月）。
The 'return' is the yearly profit. Another way to think of that is that for every CN¥1 worth of equity, the company was able to earn CN¥0.23 in profit.
“回报” 是每年的利润。另一种思考方式是，每持有价值1元人民币的股权，该公司就能获得0.23元人民币的利润。
Does Sichuan Road & BridgeLtd Have A Good Return On Equity?
四川路桥股份有限公司的股本回报率是否良好？
By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. Pleasingly, Sichuan Road & BridgeLtd has a superior ROE than the average (7.8%) in the Construction industry.
通过将公司的投资回报率与其行业平均水平进行比较，我们可以快速衡量其表现如何。但是，这种方法仅在粗略检查时有用，因为各公司在相同的行业分类中确实存在很大差异。令人高兴的是，四川公路桥梁有限公司的投资回报率高于建筑行业的平均水平（7.8％）。
That's what we like to see. With that said, a high ROE doesn't always indicate high profitability. A higher proportion of debt in a company's capital structure may also result in a high ROE, where the high debt levels could be a huge risk . To know the 2 risks we have identified for Sichuan Road & BridgeLtd visit our risks dashboard for free.
这就是我们喜欢看到的。话虽如此，高投资回报率并不总是表示高盈利能力。公司资本结构中债务比例的增加也可能导致较高的投资回报率，而高债务水平可能构成巨大的风险。要了解我们为四川路桥确定的两种风险，请免费访问我们的风险控制面板。
How Does Debt Impact ROE?
债务如何影响投资回报率？
Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
公司通常需要投资以增加利润。这些现金可以来自留存收益、发行新股（股权）或债务。就第一和第二种选择而言，投资回报率将反映现金的使用情况，以实现增长。在后一种情况下，债务的使用将提高回报，但不会改变权益。通过这种方式，债务的使用将提高投资回报率，尽管业务的核心经济保持不变。
Sichuan Road & BridgeLtd's Debt And Its 23% ROE
四川路桥有限公司的债务及其23％的投资回报率
Sichuan Road & BridgeLtd does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.45. Its ROE is pretty impressive but, it would have probably been lower without the use of debt. Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.
四川路桥确实使用大量债务来增加回报。它的负债权益比率为1.45。它的投资回报率相当可观，但是，如果不使用债务，投资回报率可能会更低。债务确实会带来额外的风险，因此只有当公司从中获得可观的回报时，债务才是真正值得的。
Conclusion
结论
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.
股本回报率对于比较不同业务的质量很有用。能够在没有债务的情况下实现高股本回报率的公司可以被视为高质量的企业。在其他条件相同的情况下，更高的投资回报率更好。
Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking this free report on analyst forecasts for the company.
话虽如此，尽管投资回报率是衡量业务质量的有用指标，但您必须考虑一系列因素才能确定购买股票的正确价格。相对于当前价格所反映的利润增长预期，还必须考虑利润可能的增长速度。因此，我认为可能值得查看这份关于分析师对公司的预测的免费报告。
But note: Sichuan Road & BridgeLtd may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
但请注意：四川路桥可能不是最值得买入的股票。因此，来看看这份投资回报率高、负债率低的有趣公司的免费清单。
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