Return on equity

简明释义

股本回报

英英释义

Return on equity (ROE) is a financial ratio that measures the ability of a company to generate profits from its shareholders' equity, expressed as a percentage.

股本回报率(ROE)是一个财务比率,用于衡量公司从股东权益中产生利润的能力,通常以百分比表示。

例句

1.To improve the Return on equity 股本回报率, the management implemented cost-cutting measures.

为了提高Return on equity 股本回报率,管理层实施了削减成本的措施。

2.A declining Return on equity 股本回报率 may signal financial trouble for a company.

下降的Return on equity 股本回报率可能预示着公司的财务问题。

3.The company reported a Return on equity 股本回报率 of 15% last year, indicating strong profitability.

该公司去年报告的Return on equity 股本回报率为15%,表明盈利能力强。

4.Investors often look for a high Return on equity 股本回报率 when evaluating potential investments.

投资者在评估潜在投资时,通常寻找高的Return on equity 股本回报率

5.The Return on equity 股本回报率 can help determine how effectively a company is using its equity to generate profits.

通过Return on equity 股本回报率可以帮助确定公司如何有效利用其股本来产生利润。

作文

Return on equity (ROE) is a crucial financial metric used by investors and analysts to evaluate a company's profitability relative to its shareholders' equity. It is calculated by dividing net income by shareholder equity, resulting in a percentage that indicates how effectively a company is using its equity to generate profits. Understanding Return on equity can provide valuable insights into a company's financial health and operational efficiency.To grasp the significance of Return on equity, it is essential to recognize what it represents. Essentially, ROE measures the return generated on the investment made by the shareholders. A higher ROE suggests that a company is more efficient at converting equity financing into profit, while a lower ROE may indicate inefficiencies or potential issues within the business operations. Investors often seek companies with high ROE values as they are likely to offer better returns on their investments.Moreover, Return on equity allows for comparisons between companies within the same industry. For instance, if Company A has an ROE of 15% and Company B has an ROE of 10%, investors might prefer Company A, assuming all other factors are equal. This comparative analysis helps investors identify which companies are managing their equity more effectively and are likely to provide superior long-term returns.However, it is important to consider that a very high Return on equity might not always be a positive indicator. Sometimes, companies achieve high ROE through excessive debt, which can inflate the ratio. In such cases, while the returns appear attractive, the underlying risk associated with high leverage could pose a threat to the company's stability. Therefore, it is advisable to analyze ROE in conjunction with other financial metrics, such as debt-to-equity ratio and return on assets (ROA), to gain a comprehensive view of a company's financial situation.In addition to providing insights into company performance, Return on equity can also be a useful tool for assessing management effectiveness. A consistent increase in ROE over time may reflect strong leadership and sound strategic decisions. Conversely, if ROE is declining, it might signal potential problems within the company that need to be addressed. Thus, tracking ROE trends can help investors make informed decisions about their investments.Lastly, it is worth noting that different industries have varying benchmarks for acceptable ROE levels. For example, technology companies may typically exhibit higher ROE compared to utility companies due to the nature of their business models. Therefore, when evaluating a company's Return on equity, it is crucial to consider the industry context to determine whether the ROE is favorable.In conclusion, Return on equity is a vital financial metric that provides insights into a company's profitability and operational efficiency relative to shareholder equity. It serves as a benchmark for comparing companies within the same industry and assessing management effectiveness. While a high ROE is generally desirable, it is essential to analyze it alongside other financial indicators to ensure a comprehensive understanding of a company's financial health. By doing so, investors can make more informed decisions and enhance their investment strategies.

股东权益回报率(ROE)是投资者和分析师用来评估公司相对于其股东权益的盈利能力的重要财务指标。它通过将净收入除以股东权益计算得出,结果是一个百分比,表示公司在多大程度上有效利用其股本来产生利润。理解股东权益回报率可以为公司财务健康状况和运营效率提供有价值的见解。要掌握股东权益回报率的重要性,首先要认识它所代表的含义。本质上,ROE衡量的是股东投资所产生的回报。较高的ROE表明公司在将股本融资转化为利润方面更有效,而较低的ROE可能表明业务运营中存在低效或潜在问题。投资者通常会寻求ROE值较高的公司,因为它们可能会提供更好的投资回报。此外,股东权益回报率还允许在同一行业内对公司进行比较。例如,如果公司A的ROE为15%,而公司B的ROE为10%,投资者可能会偏好公司A,假设其他因素相同。这种比较分析帮助投资者识别哪些公司更有效地管理其股本,并可能提供更优的长期回报。然而,需要注意的是,过高的股东权益回报率并不总是积极的指标。有时,公司通过过度负债实现高ROE,这可能会夸大该比例。在这种情况下,尽管回报看起来很有吸引力,但与高杠杆相关的潜在风险可能对公司的稳定性构成威胁。因此,建议将ROE与其他财务指标(如债务与股本比率和资产回报率(ROA))结合分析,以全面了解公司的财务状况。除了提供公司绩效的见解外,股东权益回报率还是评估管理效率的有用工具。ROE在一段时间内的持续增长可能反映出强大的领导能力和合理的战略决策。相反,如果ROE下降,则可能表明公司内部存在需要解决的潜在问题。因此,跟踪ROE趋势可以帮助投资者做出明智的投资决策。最后,值得注意的是,不同的行业对可接受的ROE水平有不同的基准。例如,由于商业模式的性质,科技公司通常会表现出比公用事业公司更高的ROE。因此,在评估公司的股东权益回报率时,考虑行业背景以确定ROE是否有利至关重要。总之,股东权益回报率是一个重要的财务指标,提供了公司相对于股东权益的盈利能力和运营效率的见解。它作为同一行业内公司比较和评估管理效率的基准。虽然高ROE通常是可取的,但必须与其他财务指标一起分析,以确保全面了解公司的财务健康状况。通过这样做,投资者可以做出更明智的决策,增强他们的投资策略。