Boasting A 26% Return On Equity, Is Western Mining Co.,Ltd. (SHSE:601168) A Top Quality Stock?
Boasting A 26% Return On Equity, Is Western Mining Co.,Ltd. (SHSE:601168) A Top Quality Stock?
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine Western Mining Co.,Ltd. (SHSE:601168), by way of a worked example.
我们能做的最好的投资之一就是我们自己的知识和技能。考虑到这一点，本文将讨论如何使用股本回报率(ROE)来更好地了解企业。我们将通过一个实例，使用净资产收益率来检验西部矿业有限公司(SHSE：601168)。
Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
股本回报率(ROE)是用来评估公司管理层利用公司资本效率的关键指标。简而言之，它是用来评估一家公司相对于其权益资本的盈利能力。
See our latest analysis for Western MiningLtd
查看我们对Western MiningLtd.的最新分析
How Is ROE Calculated?
净资产收益率是如何计算的？
The formula for ROE is:
这个净资产收益率公式是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率=(持续经营的)净利润？股东权益
So, based on the above formula, the ROE for Western MiningLtd is:
因此，根据上述公式，西部矿业有限公司的净资产收益率为：
26% = CN¥4.9b ÷ CN¥19b (Based on the trailing twelve months to June 2023).
26%=cn元49亿×cn元19b(基于截至2023年6月的12个月)。
The 'return' refers to a company's earnings over the last year. That means that for every CN¥1 worth of shareholders' equity, the company generated CN¥0.26 in profit.
“回报”指的是一家公司过去一年的收益。这意味着，每增加价值1元的股东权益，公司就会产生0.26元的利润。
Does Western MiningLtd Have A Good Return On Equity?
西部矿业股份有限公司的股本回报率高吗？
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. As you can see in the graphic below, Western MiningLtd has a higher ROE than the average (7.1%) in the Metals and Mining industry.
可以说，评估公司净资产收益率最简单的方法是将其与所在行业的平均水平进行比较。然而，这种方法只是作为一种粗略的检查，因为在同一行业分类中，公司确实有很大的不同。如下图所示，Western MiningLtd的净资产收益率高于金属和矿业行业的平均水平(7.1%)。
That is a good sign. However, bear in mind that a high ROE doesn't necessarily indicate efficient profit generation. 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 Western MiningLtd visit our risks dashboard for free.
这是一个好兆头。然而，请记住，高净资产收益率并不一定意味着有效的利润创造。债务在公司资本结构中的比例较高也可能导致较高的净资产收益率，而较高的债务水平可能是一个巨大的风险。要了解我们为Western MiningLtd确定的两个风险，请免费访问我们的风险仪表板。
How Does Debt Impact ROE?
债务对净资产收益率有何影响？
Companies usually need to invest money to grow their profits. That cash can come from issuing shares, retained earnings, 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. That will make the ROE look better than if no debt was used.
公司通常需要投入资金来增加利润。这些现金可以来自发行股票、留存收益或债务。在第一种和第二种选择的情况下，净资产收益率将反映现金用于增长的这种情况。在后一种情况下，债务的使用将提高回报，但不会改变股权。这将使净资产收益率看起来比不使用债务的情况下更好。
Western MiningLtd's Debt And Its 26% ROE
西部矿业有限公司的债务及其26%的净资产收益率
Western MiningLtd does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.23. While no doubt that its ROE is impressive, we would have been even more impressed had the company achieved this with lower debt. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
西部矿业有限公司确实使用了大量债务来增加回报。它的债务与股本比率为1.23。虽然毫无疑问，它的净资产收益率令人印象深刻，但如果该公司以较低的债务实现这一点，我们会更加印象深刻。债务增加了风险，减少了公司未来的选择，所以你通常希望看到使用它的一些良好回报。
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.
股本回报率在比较不同企业的质量时很有用。一家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认为是一家高质量的企业。在其他条件相同的情况下，净资产收益率越高越好。
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，虽然净资产收益率是衡量业务质量的有用指标，但你必须考虑一系列因素，才能确定购买股票的合适价格。相对于当前价格反映的利润增长预期，也必须考虑利润可能增长的速度。所以我觉得这可能值得一查免费分析师对该公司的预测报告。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
当然了,如果你把目光投向别处，你可能会发现这是一笔很棒的投资。所以让我们来看看这个免费有趣的公司名单。
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.
对这篇文章有什么反馈吗？担心内容吗？ 保持联系直接与我们联系。或者，也可以给编辑组发电子邮件，地址是implywallst.com。
本文由Simply Wall St.撰写，具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论，我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议，也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意，我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。