rate of return on common stockholders' equity

简明释义

普通股东权益报酬率

英英释义

例句

1.The board of directors is pleased with the current rate of return on common stockholders' equity as it reflects strong management performance.

董事会对当前的普通股股东权益回报率感到满意，因为这反映了管理层的强大表现。

2.To attract new investors, the firm needs to improve its rate of return on common stockholders' equity significantly.

为了吸引新投资者，公司需要显著改善其普通股股东权益回报率。

3.The company's rate of return on common stockholders' equity is an important indicator of its profitability.

公司的普通股股东权益回报率是其盈利能力的重要指标。

4.A declining rate of return on common stockholders' equity may signal financial trouble for a company.

下降的普通股股东权益回报率可能预示着公司的财务问题。

5.Investors often look for a high rate of return on common stockholders' equity when evaluating potential stocks.

投资者在评估潜在股票时，通常会寻找较高的普通股股东权益回报率。

作文

Understanding financial metrics is crucial for investors and business owners alike. One key metric that often comes into play when evaluating a company's performance is the rate of return on common stockholders' equity. This financial ratio helps to assess how effectively a company is using its equity to generate profits. In simpler terms, it indicates how much profit a company is making for each dollar of equity invested by its common shareholders.The rate of return on common stockholders' equity (often abbreviated as ROE) is calculated by dividing net income by the average equity of the shareholders. This ratio is particularly important because it provides insights into the profitability of a company relative to the equity held by its common stockholders. A higher ROE suggests that the company is efficient in generating profits from its equity base, which can be an attractive feature for potential investors.Investors often compare the ROE of different companies within the same industry to gauge performance. For instance, if Company A has an ROE of 15% while Company B has an ROE of 10%, investors might lean towards Company A, believing it is managing its equity more effectively. However, it is essential to consider other factors such as the overall market conditions, the company's growth prospects, and its risk profile before making investment decisions solely based on ROE.Moreover, the rate of return on common stockholders' equity can also provide insights into how well a company is utilizing leverage. Companies that take on debt may have a higher ROE because they are using borrowed funds to generate additional profits. However, this comes with increased risk, as high levels of debt can lead to financial distress if not managed properly. Therefore, while a high ROE can be attractive, it is vital to analyze the company's capital structure and understand the associated risks.In addition to being a useful tool for investors, the rate of return on common stockholders' equity is also valuable for company management. By monitoring this metric, managers can identify trends in profitability and make informed decisions regarding investments, dividends, and operational improvements. If the ROE is declining, it may signal that the company needs to reassess its strategies to enhance profitability.Furthermore, the rate of return on common stockholders' equity can influence a company's stock price. Investors typically favor companies with a strong ROE, which can lead to higher demand for shares and, consequently, an increase in stock prices. This relationship underscores the importance of maintaining a healthy ROE, as it can directly impact a company's market valuation.In conclusion, the rate of return on common stockholders' equity is a vital financial metric that offers insights into a company's profitability and efficiency in using equity. Understanding this ratio can help investors make informed decisions and enable company management to drive strategic initiatives. While it is an essential tool in financial analysis, it should be used in conjunction with other metrics and qualitative factors to gain a comprehensive view of a company's performance. Overall, mastering the concept of ROE is beneficial for anyone involved in finance, investment, or corporate management.

理解财务指标对投资者和企业主来说至关重要。当评估公司的表现时，一个关键的指标就是普通股股东权益的回报率。这个财务比率有助于评估公司利用其股东权益创造利润的有效性。简单来说，它指示公司为每一美元的普通股东权益投资所产生的利润。普通股股东权益的回报率（通常缩写为ROE）是通过将净收入除以股东的平均权益来计算的。这个比率特别重要，因为它提供了一个公司相对于其普通股东权益的盈利能力的洞察。较高的ROE表明公司在其股本基础上有效地生成利润，这对潜在投资者来说可能是一个吸引人的特征。投资者通常会比较同一行业内不同公司的ROE，以评估表现。例如，如果公司A的ROE为15%，而公司B的ROE为10%，投资者可能会倾向于选择公司A，认为它更有效地管理其股东权益。然而，在仅仅根据ROE做出投资决策之前，考虑其他因素如整体市场状况、公司的增长前景和风险特征是至关重要的。此外，普通股股东权益的回报率还可以提供有关公司如何利用杠杆的洞察。承担债务的公司可能会有更高的ROE，因为它们使用借入资金来产生额外的利润。然而，这也伴随着更高的风险，因为如果不妥善管理，高水平的债务可能导致财务困境。因此，尽管高ROE可能具有吸引力，但分析公司的资本结构并理解相关风险至关重要。除了对投资者有用之外，普通股股东权益的回报率对公司管理层也很有价值。通过监控这一指标，管理者可以识别盈利趋势，并就投资、分红和运营改进做出明智的决策。如果ROE下降，可能表明公司需要重新评估其战略以提升盈利能力。此外，普通股股东权益的回报率也会影响公司的股票价格。投资者通常青睐ROE强劲的公司，这可能导致对股票的需求增加，从而推高股票价格。这种关系强调了保持健康ROE的重要性，因为它可以直接影响公司的市场估值。总之，普通股股东权益的回报率是一个重要的财务指标，提供了关于公司盈利能力和使用股东权益效率的洞察。理解这个比率可以帮助投资者做出明智的决策，并使公司管理层推动战略举措。虽然它是财务分析中的一个重要工具，但应与其他指标和定性因素结合使用，以获得对公司表现的全面了解。总体而言，掌握ROE的概念对任何参与金融、投资或企业管理的人都是有益的。