returns on equity (ROE)

简明释义

权益回报率

英英释义

例句

1.To attract investors, the startup needs to demonstrate strong returns on equity (ROE) in its early years.

为了吸引投资者，这家初创公司需要在早期展示强劲的股本回报率（ROE）。

2.Investors often look for companies with high returns on equity (ROE) as a sign of effective management.

投资者通常寻找具有高股本回报率（ROE）的公司，作为管理有效的标志。

3.A low returns on equity (ROE) may suggest that the company is not utilizing its equity efficiently.

较低的股本回报率（ROE）可能表明公司未能有效利用其股本。

4.The company's returns on equity (ROE) increased significantly this year, indicating better profitability.

该公司的股本回报率（ROE）在今年显著增加，表明盈利能力改善。

5.The financial analyst reported that the returns on equity (ROE) for the last quarter was above industry average.

金融分析师报告称，上个季度的股本回报率（ROE）高于行业平均水平。

作文

In the world of finance and investing, understanding key performance indicators is crucial for making informed decisions. One such indicator that investors often rely on is returns on equity (ROE). This financial metric provides insight into how effectively a company is using its equity to generate profits. In this essay, we will explore the concept of returns on equity (ROE), its significance, and how it can be applied in evaluating a company's financial health.Returns on equity (ROE) is defined as the ratio of net income to shareholder's equity. It essentially measures the profitability of a company in relation to the equity that shareholders have invested. A higher returns on equity (ROE) indicates that a company is able to generate more profit per dollar of equity, which is generally viewed favorably by investors. For example, if a company has a net income of $1 million and total equity of $5 million, its returns on equity (ROE) would be 20%. This means the company is generating $0.20 for every dollar of equity.The significance of returns on equity (ROE) lies in its ability to provide a quick snapshot of a company's financial performance. Investors often use this metric to compare companies within the same industry, as it allows them to identify which firms are more efficient at turning equity into profit. A consistently high returns on equity (ROE) can indicate a strong competitive advantage, effective management, and a sound business model. Conversely, a low or declining returns on equity (ROE) might signal underlying issues, such as poor management decisions or a struggling business environment.In addition to its use in comparisons, returns on equity (ROE) can also serve as a valuable tool for assessing a company's growth potential. Companies with high returns on equity (ROE) are often able to reinvest their earnings back into the business, fueling further growth and expansion. This reinvestment strategy can lead to a compounding effect, where the company's equity base increases, allowing for even greater profit generation in the future. Investors looking for growth opportunities may prioritize companies with strong returns on equity (ROE) as they are more likely to deliver superior long-term returns.However, it is essential to consider the context when analyzing returns on equity (ROE). Different industries have varying benchmarks for what constitutes a good returns on equity (ROE). For instance, technology companies may exhibit much higher returns on equity (ROE) compared to traditional manufacturing firms due to lower capital requirements and higher scalability. Therefore, when evaluating returns on equity (ROE), one must take into account the industry standards and the overall economic environment.Moreover, while returns on equity (ROE) is a valuable metric, it should not be used in isolation. Investors should consider other financial ratios and indicators, such as return on assets (ROA), debt-to-equity ratio, and profit margins, to get a comprehensive view of a company's financial health. By combining returns on equity (ROE) with other metrics, investors can make more informed decisions and mitigate risks associated with investing.In conclusion, returns on equity (ROE) is a critical financial metric that helps investors assess a company's efficiency in generating profits from equity. Its importance in comparing companies, evaluating growth potential, and providing insights into financial health cannot be overstated. However, it is vital to analyze returns on equity (ROE) in conjunction with other financial indicators and within the context of the specific industry. By doing so, investors can better navigate the complexities of the financial markets and make more strategic investment choices.

在金融和投资的世界中，理解关键绩效指标对于做出明智的决策至关重要。投资者常常依赖的一个指标是股本回报率（ROE）。这个财务指标提供了公司如何有效利用其股本来产生利润的洞察。在这篇文章中，我们将探讨股本回报率（ROE）的概念、其重要性以及如何在评估公司财务健康时应用它。股本回报率（ROE）被定义为净收入与股东权益的比率。它本质上衡量了一家公司相对于股东投资的股本的盈利能力。较高的股本回报率（ROE）表明公司能够每投入一美元股本就产生更多的利润，这通常被投资者视为有利的。例如，如果一家公司净收入为100万美元，总股本为500万美元，则其股本回报率（ROE）为20%。这意味着公司每投入一美元股本就能产生0.20美元的利润。股本回报率（ROE）的重要性在于它能够快速提供公司财务表现的快照。投资者通常使用这一指标来比较同一行业内的公司，因为它使他们能够识别哪些公司在将股本转化为利润方面更为高效。持续较高的股本回报率（ROE）可能表明强大的竞争优势、有效的管理和健全的商业模式。相反，较低或下降的股本回报率（ROE）可能暗示潜在问题，例如管理决策不当或商业环境不景气。除了用于比较外，股本回报率（ROE）还可以作为评估公司增长潜力的有价值工具。高股本回报率（ROE）的公司通常能够将其收益再投资于业务，促进进一步的增长和扩张。这种再投资策略可能导致复合效应，即公司的股本基础增加，从而在未来产生更大的利润。寻求增长机会的投资者可能会优先考虑那些具有强大股本回报率（ROE）的公司，因为它们更有可能提供优越的长期回报。然而，在分析股本回报率（ROE）时，考虑上下文是至关重要的。不同的行业对什么构成良好的股本回报率（ROE）有不同的基准。例如，技术公司可能表现出比传统制造公司高得多的股本回报率（ROE），这是由于资本需求较低和可扩展性较高。因此，在评估股本回报率（ROE）时，必须考虑行业标准和整体经济环境。此外，虽然股本回报率（ROE）是一个有价值的指标，但不应单独使用。投资者应考虑其他财务比率和指标，如资产回报率（ROA）、债务与股本比率和利润率，以全面了解公司的财务健康状况。通过将股本回报率（ROE）与其他指标结合起来，投资者可以做出更明智的决策，并降低投资相关的风险。总之，股本回报率（ROE）是一个关键的财务指标，帮助投资者评估公司从股本中产生利润的效率。它在比较公司、评估增长潜力和提供财务健康洞察方面的重要性不容小觑。然而，分析股本回报率（ROE）时，必须结合其他财务指标并考虑特定行业的背景。通过这样做，投资者可以更好地驾驭金融市场的复杂性，并做出更具战略性的投资选择。