Should You Be Impressed By Progress Software Corporation's (NASDAQ:PRGS) ROE?
Should You Be Impressed By Progress Software Corporation's (NASDAQ:PRGS) ROE?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). To keep the lesson grounded in practicality, we'll use ROE to better understand Progress Software Corporation (NASDAQ:PRGS).
許多投資者仍在學習在分析股票時可能有用的各種指標。這篇文章是為那些想了解股本回報率(ROE)的人準備的。為了使課程立足於實踐，我們將使用淨資產收益率來更好地理解進步軟體公司(納斯達克：PRGS)。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity.
淨資產收益率，即股本回報率，是評估一家公司從股東那裡獲得投資回報的有效程度的有用工具。簡而言之，它衡量的是一家公司相對於股東權益的盈利能力。
View our latest analysis for Progress Software
查看我們對Progress Software的最新分析
How Is ROE Calculated?
淨資產收益率是如何計算的？
Return on equity can be calculated by using the formula:
股本回報率可使用以下公式計算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率=(持續經營的)淨利潤？股東權益
So, based on the above formula, the ROE for Progress Software is:
因此，根據上面的公式，Progress Software的ROE為：
18% = US$79m ÷ US$445m (Based on the trailing twelve months to August 2023).
18%=7900萬美元×4.45億美元(基於截至2023年8月的12個月的往績)。
The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.18 in profit.
“報稅表”是過去12個月的稅後收入。另一種想法是，每價值1美元的股本，公司就能夠賺取0.18美元的利潤。
Does Progress Software Have A Good ROE?
Progress Software的淨資產收益率好嗎？
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. Pleasingly, Progress Software has a superior ROE than the average (9.8%) in the Software industry.
可以說，評估公司淨資產收益率最簡單的方法是將其與所在行業的平均水準進行比較。然而，這種方法只是作為一種粗略的檢查，因為在同一行業分類中，公司確實有很大的不同。令人欣慰的是，Progress Software的淨資產收益率(ROE)高於軟體行業的平均水準(9.8%)。
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 .
這就是我們希望看到的。話雖如此，高淨資產收益率並不總是意味著高盈利。債務在公司資本結構中的比例較高也可能導致較高的淨資產收益率，而較高的債務水準可能是一個巨大的風險。
Why You Should Consider Debt When Looking At ROE
為什麼在考慮淨資產收益率時應該考慮債務
Virtually all companies need money to invest in the business, to grow profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same.
幾乎所有的公司都需要資金來投資於業務，以增加利潤。投資的現金可以來自上一年的利潤(留存收益)、發行新股或借款。在前兩種情況下，淨資產收益率將抓住這種資本增長的用途。在後一種情況下，增長所需的債務將提高回報，但不會影響股東權益。在這種情況下，債務的使用將提高淨資產收益率，即使企業的核心經濟保持不變。
Combining Progress Software's Debt And Its 18% Return On Equity
合併Progress Software的債務和18%的股本回報率
It's worth noting the high use of debt by Progress Software, leading to its debt to equity ratio of 1.70. While its ROE is respectable, it is worth keeping in mind that there is usually a limit as to how much debt a company can use. 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.
值得注意的是，Progress Software高度利用債務，導致其債務與股本比率達到1.70。雖然它的淨資產收益率是可觀的，但值得記住的是，一家公司可以使用的債務通常是有限制的。投資者應該仔細考慮，如果一家公司不能如此輕鬆地借款，它可能會表現如何，因為信貸市場確實會隨著時間的推移而變化。
Conclusion
結論
Return on equity is one way we can compare its business quality of different companies. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt.
股本回報率是我們比較不同公司業務質量的一種方式。一家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認為是一家高質量的企業。如果兩家公司的淨資產收益率相同，那麼我通常會傾向於債務較少的那一家。
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. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to check this FREE visualization of analyst forecasts for the company.
話雖如此，雖然淨資產收益率是衡量業務質量的有用指標，但你必須考慮一系列因素，才能確定購買股票的合適價格。相對於股價反映的預期，利潤增長率是一個特別重要的考慮因素。因此，你可能想查看分析師對該公司預測的免費可視化。
Of course Progress Software 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.
當然了進步軟體可能不是最值得購買的股票那就是。所以你可能想看看這個免費其他擁有高ROE和低債務的公司的集合。
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本文由Simply Wall St.撰寫，具有概括性.我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論，我們的文章並不打算作為財務建議.它不構成買賣任何股票的建議，也沒有考慮你的目標或你的財務狀況.我們的目標是為您帶來由基本面數據驅動的長期重點分析.請注意，我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內.Simply Wall St.對上述任何一隻股票都沒有持倉.