rate of return on equity

简明释义

股本收益率

英英释义

例句

1.The rate of return on equity is calculated by dividing net income by shareholder equity.

计算股本回报率的方法是将净收入除以股东权益。

2.In the last fiscal year, our rate of return on equity improved significantly.

在过去的财政年度，我们的股本回报率显著改善。

3.The company's rate of return on equity indicates how effectively it is using shareholders' funds.

公司的股本回报率表明它在多大程度上有效地利用了股东的资金。

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

下降的股本回报率可能预示着公司财务问题。

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

投资者在评估潜在股票时通常会寻找高股本回报率。

作文

The concept of rate of return on equity is crucial for investors and business owners alike. It measures the profitability of a company in relation to its equity. In simpler terms, it indicates how effectively a company is using its shareholders' funds to generate profits. Understanding the rate of return on equity can help stakeholders make informed decisions about where to invest their money. To calculate the rate of return on equity, one must divide the net income by the shareholders' equity. This formula provides a percentage that reflects the company's ability to convert equity investments into profit. For instance, if a company has a net income of $100,000 and total equity of $1,000,000, the rate of return on equity would be 10%. This means that for every dollar of equity, the company generates ten cents in profit. Investors often look for companies with a high rate of return on equity because it signifies efficient management and strong financial performance. A higher percentage can indicate that the company is effectively utilizing its equity base to fuel growth and returns. However, it is essential to compare this metric against industry averages or competitors to gain a better perspective. A company with a rate of return on equity significantly above its peers may be seen as a more attractive investment opportunity. Moreover, the rate of return on equity can also reflect the overall health of a company. A consistently high rate may suggest that a company is not only profitable but also capable of sustaining its operations and possibly expanding. Conversely, a declining rate of return on equity could raise red flags for investors, indicating potential issues within the company, such as decreasing sales, increasing costs, or poor management decisions. In addition to attracting investors, a strong rate of return on equity can also benefit a company in other ways. For example, it can lead to a higher stock price, making it easier for the company to raise capital through equity financing. Companies with a solid track record of returns on equity may find it more accessible to secure loans from financial institutions, as lenders often view them as lower risk. It's important to note that while the rate of return on equity is a valuable metric, it should not be the sole factor in evaluating a company's performance. Other financial ratios and indicators, such as return on assets and profit margins, should also be considered to get a comprehensive view of a company's financial health. In conclusion, the rate of return on equity serves as an essential barometer for assessing a company's profitability relative to its equity. It helps investors gauge the efficiency of a company's management in utilizing shareholder funds to generate profits. By understanding this key financial metric, stakeholders can make more informed decisions regarding their investments. Therefore, grasping the significance of the rate of return on equity can empower both investors and business leaders in their financial endeavors.

股本回报率（rate of return on equity）这一概念对投资者和企业主来说至关重要。它衡量了一家公司相对于其股本的盈利能力。简单来说，它表明公司在多大程度上有效地使用股东资金来产生利润。理解rate of return on equity可以帮助利益相关者就投资方向做出明智的决策。要计算rate of return on equity，必须将净收入除以股东权益。这个公式提供了一个反映公司将股本投资转化为利润的百分比。例如，如果一家公司净收入为$100,000，总股本为$1,000,000，则其rate of return on equity为10%。这意味着每一美元的股本，公司产生十美分的利润。投资者通常寻找具有高rate of return on equity的公司，因为这表明管理效率高、财务表现强劲。较高的百分比可能表明公司有效利用其股本基础来推动增长和回报。然而，将这一指标与行业平均水平或竞争对手进行比较是至关重要的。与同行相比，股本回报率显著高于平均水平的公司可能被视为更具吸引力的投资机会。此外，rate of return on equity还可以反映公司的整体健康状况。持续高的比例可能表明公司不仅盈利，而且能够维持运营并可能扩张。相反，下降的rate of return on equity可能会引发投资者的警觉，表明公司内部可能存在问题，例如销售额下降、成本上升或管理决策不当。除了吸引投资者外，强劲的rate of return on equity还可以为公司带来其他好处。例如，这可以导致更高的股票价格，使公司更容易通过股权融资筹集资金。具有良好股本回报记录的公司可能会发现更容易从金融机构获得贷款，因为贷方通常将其视为风险较低。需要注意的是，虽然rate of return on equity是一个有价值的指标，但不应成为评估公司表现的唯一因素。其他财务比率和指标，如资产回报率和利润率，也应考虑在内，以全面了解公司的财务健康状况。总之，rate of return on equity作为评估公司相对于其股本盈利能力的重要标准，帮助投资者衡量公司管理层在利用股东资金产生利润方面的效率。通过理解这一关键财务指标，利益相关者可以就投资做出更明智的决策。因此，掌握rate of return on equity的重要性可以赋予投资者和企业领导者在财务事务中更大的权力。