rate of return on equity; return on equity

简明释义

股本收益率

英英释义

例句

1.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。

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

为了吸引投资者，公司需要显著提高其股本回报率。

3.The company's rate of return on equity is impressive, indicating strong profitability.

公司的股本回报率令人印象深刻，表明盈利能力强。

4.Investors often look for a high return on equity when evaluating potential stocks.

投资者在评估潜在股票时通常会寻找高的股本回报率。

5.The return on equity helps measure how effectively management is using shareholders' funds.

每股收益（股本回报率）有助于衡量管理层使用股东资金的有效性。

作文

Understanding the financial performance of a company is crucial for investors and stakeholders alike. One of the key metrics used to evaluate this performance is the rate of return on equity, often abbreviated as return on equity. This financial ratio measures the ability of a company to generate profits from its shareholders' equity. In essence, it indicates how effectively management is using a company’s assets to create earnings. The formula for calculating rate of return on equity is straightforward: it is the net income divided by the shareholder's equity. This provides a percentage that reflects the profitability relative to the equity held by the owners. For instance, if a company has a net income of $1 million and total equity of $5 million, the return on equity would be 20%. This means that for every dollar of equity, the company generates 20 cents in profit. Investors often look for companies with a high rate of return on equity because it suggests that the company is efficient at generating profits. A higher percentage indicates a more effective management team and a potentially better investment opportunity. However, it is important to compare this metric with industry averages, as different industries have varying standards for what constitutes a good return on equity. For example, technology companies may have higher average returns compared to utility companies due to the nature of their business models. Moreover, while a high rate of return on equity can be attractive, it is also essential to consider the sustainability of those returns. Companies that achieve high returns through excessive leverage may be taking on too much risk. Conversely, a low return on equity does not always indicate poor performance; it could also mean that a company is reinvesting profits back into the business for growth, which might lead to higher returns in the future. In addition to evaluating individual companies, analyzing the rate of return on equity over time can provide insights into a company's financial health. A consistently increasing return on equity may signal that a company is improving its profitability and operational efficiency. On the other hand, a declining trend could raise red flags for investors, indicating potential issues within the company. Furthermore, the rate of return on equity can also be influenced by external factors such as economic conditions, market competition, and regulatory changes. For instance, during an economic downturn, even well-managed companies may see their return on equity decrease due to reduced consumer spending and lower sales volumes. In conclusion, the rate of return on equity is a vital indicator of a company's financial performance and efficiency in utilizing shareholders' funds. Investors should pay close attention to this metric, along with other financial ratios and qualitative factors, to make informed decisions. By understanding and analyzing the return on equity, stakeholders can gain valuable insights into a company's profitability and overall health in the competitive marketplace.

理解公司的财务表现对投资者和利益相关者来说至关重要。评估这种表现的关键指标之一是股本回报率，通常缩写为权益回报率。这个财务比率衡量公司从股东权益中产生利润的能力。本质上，它表明管理层在多大程度上有效地利用公司的资产来创造收益。计算股本回报率的公式很简单：它是净收入除以股东权益。这提供了一个反映相对于所有者持有的权益的盈利能力的百分比。例如，如果一家公司净收入为100万美元，总权益为500万美元，那么权益回报率将为20%。这意味着每一美元的股本，公司产生20美分的利润。投资者通常寻找具有高股本回报率的公司，因为这表明公司在产生利润方面效率较高。较高的百分比表明管理团队更有效，可能是更好的投资机会。然而，比较这一指标与行业平均水平是非常重要的，因为不同的行业对什么构成良好的权益回报率有不同的标准。例如，科技公司可能比公用事业公司有更高的平均回报率，这是由于其商业模式的性质。此外，虽然高的股本回报率可能具有吸引力，但考虑这些回报的可持续性也是至关重要的。通过过度杠杆实现高回报的公司可能承担着过多的风险。相反，低的权益回报率并不总是指示表现不佳；它也可能意味着公司将利润再投资于业务以促进增长，这可能导致未来更高的回报。除了评估单个公司外，分析股本回报率随时间的变化可以提供对公司财务健康状况的洞察。持续增加的权益回报率可能表明公司正在改善其盈利能力和运营效率。另一方面，下降的趋势可能会引发投资者的警惕，表明公司内部可能存在问题。此外，股本回报率还可能受到经济条件、市场竞争和监管变化等外部因素的影响。例如，在经济衰退期间，即使是管理良好的公司，其权益回报率也可能由于消费者支出减少和销售额下降而下降。总之，股本回报率是公司财务表现和利用股东资金效率的重要指标。投资者应密切关注这一指标，以及其他财务比率和定性因素，以做出明智的决策。通过理解和分析权益回报率，利益相关者可以获得对公司盈利能力和在竞争市场中整体健康状况的宝贵见解。