With A Return On Equity Of 9.3%, Has CMS Energy Corporation's (NYSE:CMS) Management Done Well?
With A Return On Equity Of 9.3%, Has CMS Energy Corporation's (NYSE:CMS) Management Done Well?
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 CMS Energy Corporation (NYSE:CMS).
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。爲了使本課以實用性爲基礎，我們將使用ROE來更好地了解CMS Energy Corporation（紐約證券交易所代碼：CMS）。
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 short, ROE shows the profit each dollar generates with respect to its shareholder investments.
投資回報率或股本回報率是評估公司如何有效地從股東那裏獲得投資回報的有用工具。簡而言之，投資回報率顯示了每美元從其股東投資中產生的利潤。
View our latest analysis for CMS Energy
查看我們對 CMS Energy 的最新分析
How Do You Calculate Return On Equity?
你如何計算股本回報率？
The formula for ROE is:
ROE 的公式是：
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 CMS Energy is:
因此，根據上述公式，CMS Energy的投資回報率爲：
9.3% = US$719m ÷ US$7.8b (Based on the trailing twelve months to September 2023).
9.3% = 7.19億美元 ¥78億美元（基於截至2023年9月的過去十二個月）。
The 'return' is the income the business earned over the last year. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.09 in profit.
“回報” 是企業去年獲得的收入。將其概念化的一種方法是，公司每擁有1美元的股東資本，就能獲得0.09美元的利潤。
Does CMS Energy Have A Good ROE?
CMS Energy的投資回報率是否良好？
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. You can see in the graphic below that CMS Energy has an ROE that is fairly close to the average for the Integrated Utilities industry (9.3%).
可以說，評估公司投資回報率的最簡單方法是將其與行業平均水平進行比較。但是，這種方法只能作爲粗略的檢查才有用，因爲在同一個行業分類中，公司的確存在很大差異。您可以在下圖中看到，CMS Energy的投資回報率相當接近綜合公用事業行業的平均水平（9.3％）。
That's neither particularly good, nor bad. Although the ROE is similar to the industry, we should still perform further checks to see if the company's ROE is being boosted by high debt levels. If so, this increases its exposure to financial risk. To know the 3 risks we have identified for CMS Energy visit our risks dashboard for free.
這既不是特別好，也不是壞事。儘管投資回報率與該行業相似，但我們仍應進行進一步檢查，以查看高債務水平是否提振了該公司的投資回報率。如果是這樣，則會增加其財務風險敞口。要了解我們爲CMS Energy確定的3種風險，請免費訪問我們的風險儀表板。
The Importance Of Debt To Return On Equity
債務對股本回報率的重要性
Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used.
公司通常需要投資資金來增加利潤。投資現金可以來自上一年度的利潤（留存收益）、發行新股或借款。就第一和第二種選擇而言，投資回報率將反映現金的這種用途，以實現增長。在後一種情況下，用於增長的債務將提高回報，但不會影響總權益。這將使投資回報率看起來比不使用債務時要好。
CMS Energy's Debt And Its 9.3% ROE
CMS Energy的債務及其9.3％的投資回報率
It's worth noting the high use of debt by CMS Energy, leading to its debt to equity ratio of 1.99. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. 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，CMS Energy大量使用債務，使其負債權益比率爲1.99。由於投資回報率相當低，債務使用量大，目前很難對這項業務感到興奮。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 a useful indicator of the ability of a business to generate profits and return them to shareholders. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
股本回報率是衡量企業創造利潤並將其返還給股東的能力的有用指標。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。如果兩家公司的債務與股權比率大致相同，而一家公司的投資回報率更高，那麼我通常更喜歡投資回報率更高的那家公司。
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. 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.
話雖如此，儘管投資回報率是衡量業務質量的有用指標，但您必須考慮一系列因素才能確定購買股票的正確價格。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, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
當然，通過尋找其他地方，你可能會找到一筆不錯的投資。因此，來看看這份有趣的公司的免費清單吧。
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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。