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Capital Allocation Trends At Henan Huaying Agricultural Development (SZSE:002321) Aren't Ideal

Capital Allocation Trends At Henan Huaying Agricultural Development (SZSE:002321) Aren't Ideal

河南華英農業發展有限公司(SZSE:002321)的資本配置趨勢並不理想
Simply Wall St ·  01/22 19:51

What financial metrics can indicate to us that a company is maturing or even in decline? Businesses in decline often have two underlying trends, firstly, a declining return on capital employed (ROCE) and a declining base of capital employed. This indicates the company is producing less profit from its investments and its total assets are decreasing. Having said that, after a brief look, Henan Huaying Agricultural Development (SZSE:002321) we aren't filled with optimism, but let's investigate further.

哪些財務指標可以向我們表明公司正在成熟甚至衰落?衰落的企業通常有兩個潛在的趨勢,第一,衰退 返回 論資本使用率(ROCE)和下降情況 基礎 所用資本的比例。這表明該公司的投資利潤減少了,總資產也在減少。話雖如此,簡短地看一看,河南華英農業發展(SZSE:002321)我們並不樂觀,但讓我們進一步調查一下。

Understanding Return On Capital Employed (ROCE)

了解資本使用回報率 (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. Analysts use this formula to calculate it for Henan Huaying Agricultural Development:

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)。分析師使用以下公式計算河南華英農業開發有限公司:

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)

0.07 = CN¥176m ÷ (CN¥4.1b - CN¥1.6b) (Based on the trailing twelve months to September 2023).

0.07 = 1.76億元人民幣 ÷(41億元人民幣-16億元人民幣) (基於截至2023年9月的過去十二個月)

So, Henan Huaying Agricultural Development has an ROCE of 7.0%. On its own, that's a low figure but it's around the 7.5% average generated by the Food industry.

因此,河南華英農業開發的投資回報率爲7.0%。就其本身而言,這是一個很低的數字,但約爲食品行業的平均7.5%。

Check out our latest analysis for Henan Huaying Agricultural Development

查看我們對河南華英農業發展的最新分析

roce
SZSE:002321 Return on Capital Employed January 23rd 2024
SZSE: 002321 2024 年 1 月 23 日動用資本回報率

While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you're interested in investigating Henan Huaying Agricultural Development's past further, check out this free graph of past earnings, revenue and cash flow.

雖然過去並不能代表未來,但了解一家公司的歷史表現可能會有所幫助,這就是我們上面有這張圖表的原因。如果你有興趣進一步調查河南華英農業開發的過去,請查看這張過去的收益、收入和現金流的免費圖表。

What Can We Tell From Henan Huaying Agricultural Development's ROCE Trend?

我們可以從河南華英農業開發的ROCE趨勢中得出什麼?

In terms of Henan Huaying Agricultural Development's historical ROCE trend, it isn't fantastic. Unfortunately, returns have declined substantially over the last five years to the 7.0% we see today. On top of that, the business is utilizing 34% less capital within its operations. When you see both ROCE and capital employed diminishing, it can often be a sign of a mature and shrinking business that might be in structural decline. If these underlying trends continue, we wouldn't be too optimistic going forward.

就河南華英農業開發的歷史投資回報率走勢而言,這並不奇妙。不幸的是,在過去五年中,回報率大幅下降至我們今天看到的7.0%。最重要的是,該企業在運營中使用的資本減少了34%。當你看到投資回報率和資本利用率都減少時,這通常表明業務成熟且萎縮,可能處於結構性衰退。如果這些潛在趨勢繼續下去,我們對未來不會太樂觀。

On a side note, Henan Huaying Agricultural Development has done well to pay down its current liabilities to 38% of total assets. That could partly explain why the ROCE has dropped. Effectively this means their suppliers or short-term creditors are funding less of the business, which reduces some elements of risk. Since the business is basically funding more of its operations with it's own money, you could argue this has made the business less efficient at generating ROCE.

順便說一句,河南華英農業發展在償還其流動負債佔總資產的38%方面做得很好。這可以部分解釋投資回報率下降的原因。實際上,這意味着他們的供應商或短期債權人減少了對企業的融資,從而降低了某些風險因素。由於該企業基本上是用自己的資金爲其運營提供更多資金,因此您可能會爭辯說,這降低了企業產生投資回報率的效率。

The Key Takeaway

關鍵要點

In summary, it's unfortunate that Henan Huaying Agricultural Development is shrinking its capital base and also generating lower returns. Long term shareholders who've owned the stock over the last five years have experienced a 64% depreciation in their investment, so it appears the market might not like these trends either. That being the case, unless the underlying trends revert to a more positive trajectory, we'd consider looking elsewhere.

總而言之,不幸的是,河南華英農業發展正在縮小資本基礎,同時產生的回報也較低。在過去五年中持有該股的長期股東的投資貶值了64%,因此看來市場可能也不喜歡這些趨勢。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。

Like most companies, Henan Huaying Agricultural Development does come with some risks, and we've found 1 warning sign that you should be aware of.

像大多數公司一樣,河南華英農業發展確實存在一些風險,我們發現了一個你應該注意的警告信號。

For those who like to invest in solid companies, check out this free list of companies with solid balance sheets and high returns on equity.

對於那些喜歡投資穩健公司的人,可以查看這份資產負債表穩健和股本回報率高的公司的免費清單。

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.

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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。

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