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The Returns On Capital At American Vanguard (NYSE:AVD) Don't Inspire Confidence

The Returns On Capital At American Vanguard (NYSE:AVD) Don't Inspire Confidence

American Vanguard(紐約證券交易所代碼:AVD)的資本回報率並不能激發信心
Simply Wall St ·  03/16 10:49

When it comes to investing, there are some useful financial metrics that can warn us when a business is potentially in trouble. When we see a declining return on capital employed (ROCE) in conjunction with a declining base of capital employed, that's often how a mature business shows signs of aging. This reveals that the company isn't compounding shareholder wealth because returns are falling and its net asset base is shrinking. In light of that, from a first glance at American Vanguard (NYSE:AVD), we've spotted some signs that it could be struggling, so let's investigate.

在投資方面,有一些有用的財務指標可以警告我們企業何時可能遇到麻煩。當我們看到下降時 返回 在資本使用率(ROCE)的下降的同時 基礎 就所使用的資本而言,成熟的企業通常會以這種方式顯示出老化的跡象。這表明該公司之所以沒有增加股東財富,是因爲回報率下降且淨資產基礎在萎縮。有鑑於此,乍一看《美國先鋒報》(紐約證券交易所代碼:AVD),我們發現了一些可能陷入困境的跡象,所以讓我們來調查一下。

What Is Return On Capital Employed (ROCE)?

什麼是資本使用回報率(ROCE)?

If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on American Vanguard is:

如果你以前沒有與ROCE合作過,它會衡量公司從其業務中使用的資本中產生的 “回報”(稅前利潤)。在《美國先鋒》上進行此計算的公式爲:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)

已動用資本回報率 = 息稅前收益 (EBIT) ¥(總資產-流動負債)

0.043 = US$23m ÷ (US$768m - US$230m) (Based on the trailing twelve months to December 2023).

0.043 = 2,300萬美元 ÷(7.68億美元-2.3億美元) (基於截至2023年12月的過去十二個月)

Therefore, American Vanguard has an ROCE of 4.3%. In absolute terms, that's a low return and it also under-performs the Chemicals industry average of 9.9%.

因此,《美國先鋒》的投資回報率爲4.3%。從絕對值來看,回報率很低,也低於化工行業9.9%的平均水平。

roce
NYSE:AVD Return on Capital Employed March 16th 2024
紐約證券交易所:AVD 已動用資本回報率 2024 年 3 月 16 日

Above you can see how the current ROCE for American Vanguard compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for American Vanguard .

上面你可以看到American Vanguard當前的投資回報率與其先前的資本回報率相比如何,但從過去可以看出來的只有那麼多。如果你有興趣,可以在我們的《美國先鋒》免費分析師報告中查看分析師的預測。

What The Trend Of ROCE Can Tell Us

ROCE 的趨勢能告訴我們什麼

There is reason to be cautious about American Vanguard, given the returns are trending downwards. To be more specific, the ROCE was 8.7% five years ago, but since then it has dropped noticeably. Meanwhile, capital employed in the business has stayed roughly the flat over the period. Since returns are falling and the business has the same amount of assets employed, this can suggest it's a mature business that hasn't had much growth in the last five years. If these trends continue, we wouldn't expect American Vanguard to turn into a multi-bagger.

鑑於回報率呈下降趨勢,有理由對美國先鋒隊持謹慎態度。更具體地說,五年前的投資回報率爲8.7%,但此後已明顯下降。同時,在此期間,該業務使用的資本基本保持不變。由於回報率下降且該企業的資產數量相同,這可能表明它是一家成熟的企業,在過去五年中沒有太大的增長。如果這些趨勢繼續下去,我們預計美國先鋒隊不會變成一個多口袋。

In Conclusion...

總之...

In the end, the trend of lower returns on the same amount of capital isn't typically an indication that we're looking at a growth stock. Investors haven't taken kindly to these developments, since the stock has declined 22% from where it was five years ago. That being the case, unless the underlying trends revert to a more positive trajectory, we'd consider looking elsewhere.

歸根結底,相同數量的資本回報率下降的趨勢通常並不表示我們正在考慮成長型股票。投資者對這些事態發展並不友善,因爲該股已比五年前下跌了22%。既然如此,除非潛在趨勢恢復到更積極的軌跡,否則我們會考慮將目光投向其他地方。

If you want to continue researching American Vanguard, you might be interested to know about the 1 warning sign that our analysis has discovered.

如果你想繼續研究《美國先鋒》,你可能有興趣了解我們的分析發現的1個警告信號。

While American Vanguard may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list here.

儘管American Vanguard目前可能無法獲得最高的回報,但我們編制了一份目前股本回報率超過25%的公司清單。在這裏查看這個免費清單。

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

對這篇文章有反饋嗎?對內容感到擔憂?直接聯繫我們。 或者,給編輯團隊 (at) simplywallst.com 發送電子郵件。
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。

声明:本內容僅用作提供資訊及教育之目的,不構成對任何特定投資或投資策略的推薦或認可。 更多信息
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