sulan

Wednesday, January 1, 2020

Based On Its ROE, Is Shinelong Automotive Lightweight Application Limited (HKG:1930) A High Quality Stock? - Yahoo Finance

One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine Shinelong Automotive Lightweight Application Limited (HKG:1930), by way of a worked example.

Our data shows Shinelong Automotive Lightweight Application has a return on equity of 8.5% for the last year. That means that for every HK$1 worth of shareholders' equity, it generated HK$0.09 in profit.

Check out our latest analysis for Shinelong Automotive Lightweight Application

How Do You Calculate ROE?

The formula for ROE is:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

Or for Shinelong Automotive Lightweight Application:

8.5% = CN¥20m ÷ CN¥239m (Based on the trailing twelve months to June 2019.)

Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is the capital paid in by shareholders, plus any retained earnings. You can calculate shareholders' equity by subtracting the company's total liabilities from its total assets.

What Does Return On Equity Mean?

Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections). The 'return' is the yearly profit. The higher the ROE, the more profit the company is making. So, all else being equal, a high ROE is better than a low one. Clearly, then, one can use ROE to compare different companies.

Does Shinelong Automotive Lightweight Application Have A Good ROE?

One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As shown in the graphic below, Shinelong Automotive Lightweight Application has a lower ROE than the average (12%) in the Auto Components industry classification.

SEHK:1930 Past Revenue and Net Income, January 1st 2020

Unfortunately, that's sub-optimal. We'd prefer see an ROE above the industry average, but it might not matter if the company is undervalued. Nonetheless, it could be useful to double-check if insiders have sold shares recently.

Why You Should Consider Debt When Looking At ROE

Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.

Shinelong Automotive Lightweight Application's Debt And Its 8.5% ROE

Shareholders will be pleased to learn that Shinelong Automotive Lightweight Application has not one iota of net debt! Even though I don't think its ROE is that great, I think it's very respectable when you consider it has no debt. After all, when a company has a strong balance sheet, it can often find ways to invest in growth, even if it takes some time.

In Summary

Return on equity is one way we can compare the business quality of different companies. In my book the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt.

But when a business is high quality, the market often bids it up to a price that reflects this. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. Check the past profit growth by Shinelong Automotive Lightweight Application by looking at this visualization of past earnings, revenue and cash flow.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

Let's block ads! (Why?)

"application" - Google News
January 01, 2020 at 09:46AM
https://ift.tt/2ZMjY5R

Based On Its ROE, Is Shinelong Automotive Lightweight Application Limited (HKG:1930) A High Quality Stock? - Yahoo Finance
"application" - Google News
https://ift.tt/38cg0aE
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update

Tuesday, December 31, 2019

Six New Year’s resolutions to make you smarter and safer with technology - ZDNet

This is the year you're going to take off that 10 extra pounds. You're also going to go to the gym three times a week, and you're going to get organized, and you're going to live life to its fullest, and ...

Aw, who are we kidding? Everyone makes those resolutions, and they're usually just a distant memory by Super Bowl Sunday. So instead of those unrealistic promises to yourself, how about if we start with something that's a little more achievable? I've got some recommendations for smart things you can resolve to do with your technology in the new year to make you happier, more productive, and maybe even less anxious.

Back up to the cloud

No matter how many times well-meaning advice columnists tell us to back up, we find excuses to not do that task. And so, when (not if) some horrible catastrophe renders the data on our PC or smartphone completely inaccessible, there's no backup available. Or there's a backup from several months ago that's missing everything you've done lately.

This is where the cloud becomes a digital life saver, capturing the bits that document your digital life. It is easy to configure your smartphone so that every photo and video on your camera roll is backed up to whichever cloud you call home: Google Photos, Dropbox, Microsoft OneDrive, or Apple's iCloud.

Meanwhile, on your PC or Mac, sync your important data files to that same cloud. It's particularly easy to do this with a consumer OneDrive account. After signing in, open OneDrive Settings, click the Backup tab, click Manage Backup, and follow the instructions. Just make sure to save important files to the Desktop, Documents, and Pictures folders, which are then backed up automatically.

Get smart about passwords

Using a bad, easy-to-guess password can turn your life upside down. Just ask anyone who's ever had a bank account compromised. Reusing any password, even a strong one, is just as bad. If a sloppy website allows your credentials to be stolen, a determined thief will try them at other sites.

So, how do you generate a strong, unique password for every account, and how do you keep track of them all? Use a password manager. I prefer to store my heavily encrypted password file in the cloud using 1Password, but you have plenty of other choices, as I explain in this article.

Also, don't use "correct horse battery staple" as your password. It's almost as bad as "123456."

Turn on 2FA everywhere

If, despite your best precautions, an online thief steals your credentials for an important website or service, you have another roadblock to put in their way. Add multi-factor authentication (often called two-factor authentication, or 2FA) to every important online account. This is especially important for email credentials, any kind of banking or payment service, and all your social media accounts. In fact, if an important service doesn't offer 2FA as a security option, you should perhaps ask them why not.

Both Google and Microsoft make simple, elegant authenticator apps for smartphones. If you're the independent sort, try the free Authy app. I've put together a 2FA explainer that can get you started. Do it today.

Stop tweaking things

In the early days of the PC revolution, computers were like the Ford Model T. If you took one out on the road, you'd better have a full toolkit handy and be prepared to get very greasy while tinkering under the hood.

The heyday of the Model T was almost exactly a century ago. In the 21st Century, when cars are mostly code, you are not going to make your Tesla go faster by going in and editing some config files. The same is true with PCs. I routinely see people who insist that they can make their computing machines go at warp speed with a few registry edits.

But when I look deeper into those magical tweaks, I almost never find that any of these trivial changes truly make a difference. Most of modern computing is just physics, after all. You want a faster computer? Add more memory, or replace that old spinning disk with an SSD.

Take your updates

Among the tinfoil-hat set, it is fashionable to argue that true experts focus their energy on preventing software developers from installing updates. They believe, after all, that the best version of your OS was the one released three years ago (or five years ago, or even ten) and everything that has happened since has been an unmitigated disaster.

Meanwhile, here on Earth-1, every major software platform updates itself continuously. Problems with updates are relatively rare and generally solved within days or, very rarely, a week or two.

If you'd prefer to take a conservative approach, it's easy enough to defer updates for up to a month while you wait for others to identify any issues. But spending energy trying to override built-in update code is time you'll never get back.

Uninstall your antivirus

There might have been a case for installing third-party antivirus software on a Windows PC a decade or two ago, but today? Not so much. Windows Defender, which is part of every Windows 10 installation, is good enough.

That's not just damning with faint praise, either.

These days, the only reason that third-party antivirus exists is so that PC makers can actually squeeze out a profit from the bounties they get for preinstalling this crap on cheap new PCs for consumers. Fact is, the overwhelming majority of malicious software should be shut off long before it gets to your PC, using the built-in protections provided by your email provider, your ISP, and your web browser.

In fact, that third-party software is just as likely to get in the way of an update or accidentally quarantine a crucial system file. Save your money and just get rid of it.