A Note On Thai Beverage Public Company Limited's (SGX:Y92) ROE and Debt To Equity

Simply Wall St.01-03

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. ...

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moliya
·01-15
Where can I refer or get detailed analysis of THai bevrages
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moliya
·01-09
Good article to understand more. High debt is not good. Does this breweries need high cost to run their business so they have to borrow to run ....
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With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. ...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/food-beverage-tobacco/sgx-y92/thai-beverage-shares/news/a-note-on-thai-beverage-public-company-limiteds-sgxy92-roe-a\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://simplywall.st/stocks/sg/food-beverage-tobacco/sgx-y92/thai-beverage-shares/news/a-note-on-thai-beverage-public-company-limiteds-sgxy92-roe-a","article_id":"2500391741","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/5112000-choice1-main-header/1585186807175"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2500391741","pubTimestamp":1735857225,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"One of the best investments we can make is in our own knowledge and skill set. 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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 Thai Beverage Public Company Limited (SGX:Y92), by way of a worked example.   Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money.  Simply put, it is used to assess the profitability of a company in relation to its equity capital.  View our latest analysis for Thai Beverage  How Is ROE Calculated?  ROE can be calculated by using the formula:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Thai Beverage is:13% = ฿31b ÷ ฿229b (Based on the trailing twelve months to September 2024). The 'return' is the yearly profit.  That means that for every SGD1 worth of shareholders' equity, the company generated SGD0.13 in profit.   Does Thai Beverage Have A Good Return On Equity?  Arguably the easiest way to assess company's ROE is to compare it with the average in its industry.  Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification.   The image below shows that Thai Beverage has an ROE that is roughly in line with the Beverage industry average (12%).  SGX:Y92 Return on Equity January 2nd 2025 So while the ROE is not exceptional, at least its acceptable.    Although the ROE is similar to the industry, we should still perform further checks to see if the company's ROE is being boosted by high debt levels.  If so, this increases its exposure to financial risk.    Our risks dashboardshould have the 2 risks we have identified for Thai Beverage.    The Importance Of Debt To Return On Equity  Companies usually need to invest money to grow their profits.  The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing.  In the first two cases, the ROE will capture this use of capital to grow.  In the latter case, the debt used for growth will improve returns, but won't affect the total equity.  That will make the ROE look better than if no debt was used.  Thai Beverage's Debt And Its 13% ROE  Thai Beverage clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.02.   While its ROE is pretty respectable, the amount of debt the company is carrying currently is not ideal.   Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.     Conclusion    Return on equity is useful for comparing the quality of different businesses.  A company that can achieve a high return on equity without debt could be considered a high quality business.  If two companies have the same ROE, then I would generally prefer the one with less debt.  Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock.  The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too.   So you might want to take a peek at this data-rich interactive graph of forecasts for the company.  But note: Thai Beverage may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. Valuation is complex, but we're here to simplify it.Discover if Thai Beverage might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. 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With that in mind, this article will...","content":"<html><body><div><p> 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 Thai Beverage Public Company Limited (SGX:Y92), by way of a worked example.  </p><p> Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money.  Simply put, it is used to assess the profitability of a company in relation to its equity capital. </p><p><span> View our latest analysis for Thai Beverage </span></p><h2> How Is ROE Calculated? </h2><p> <strong>ROE can be calculated by using the formula:</strong> </p><p> Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity </p><p>So, based on the above formula, the ROE for Thai Beverage is:</p><p>13% = ฿31b ÷ ฿229b (Based on the trailing twelve months to September 2024).</p><p> The 'return' is the yearly profit.  That means that for every SGD1 worth of shareholders' equity, the company generated SGD0.13 in profit. </p> <h2> Does Thai Beverage Have A Good Return On Equity? </h2><p> Arguably the easiest way to assess company's ROE is to compare it with the average in its industry.  Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification.   The image below shows that Thai Beverage has an ROE that is roughly in line with the Beverage industry average (12%).  </p><figure><img height=\"316\" loading=\"lazy\" src=\"https://images.simplywall.st/asset/chart/27339980-roe-1-dark/1735857223723\" width=\"333\"/><figcaption>SGX:Y92 Return on Equity January 2nd 2025</figcaption></figure><p> So while the ROE is not exceptional, at least its acceptable.    Although the ROE is similar to the industry, we should still perform further checks to see if the company's ROE is being boosted by high debt levels.  If so, this increases its exposure to financial risk.    Our risks dashboardshould have the 2 risks we have identified for Thai Beverage.   </p><h2> The Importance Of Debt To Return On Equity </h2><p> Companies usually need to invest money to grow their profits.  The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing.  In the first two cases, the ROE will capture this use of capital to grow.  In the latter case, the debt used for growth will improve returns, but won't affect the total equity.  That will make the ROE look better than if no debt was used. </p><h2> Thai Beverage's Debt And Its 13% ROE </h2><p> Thai Beverage clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.02.   While its ROE is pretty respectable, the amount of debt the company is carrying currently is not ideal.   Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.   </p> <h2> Conclusion  </h2> <p> Return on equity is useful for comparing the quality of different businesses.  A company that can achieve a high return on equity without debt could be considered a high quality business.  If two companies have the same ROE, then I would generally prefer the one with less debt. </p><p> Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock.  The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too.   So you might want to take a peek at this data-rich interactive graph of forecasts for the company. </p><p> But note: <strong>Thai Beverage may not be the best stock to buy</strong>. So take a peek at this <strong>free</strong> list of interesting companies with high ROE and low debt. </p><div><h3>Valuation is complex, but we're here to simplify it.</h3><p>Discover if Thai Beverage might be undervalued or overvalued with our detailed analysis, featuring <strong>fair value estimates, potential risks, dividends, insider trades, and its financial condition.</strong></p>Access Free Analysis</div><p><strong>Have feedback on this article? Concerned about the content?</strong> <strong>Get in touch</strong><strong> with us directly.</strong><i> Alternatively, email editorial-team (at) simplywallst.com.</i><i>This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.</i></p></div></body></html>","source":"simplywall_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A Note On Thai Beverage Public Company Limited's (SGX:Y92) ROE and Debt To Equity</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA Note On Thai Beverage Public Company Limited's (SGX:Y92) ROE and Debt To Equity\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-03 06:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/sg/food-beverage-tobacco/sgx-y92/thai-beverage-shares/news/a-note-on-thai-beverage-public-company-limiteds-sgxy92-roe-a><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>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. ...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/food-beverage-tobacco/sgx-y92/thai-beverage-shares/news/a-note-on-thai-beverage-public-company-limiteds-sgxy92-roe-a\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://images.simplywall.st/asset/industry/5112000-choice1-main-header/1585186807175","relate_stocks":{"BK4585":"ETF&股票定投概念","LU0048621477.USD":"富达泰国基金A","LU0205439572.USD":"富达亚太股息基金","LU1235295612.USD":"FIDELITY PACIFIC \"A\" (USDHDG) INC","LU1119993845.HKD":"FIDELITY ASIA PACIFIC DIVIDEND \"A\" (HKDHDG) INC","BK4588":"碎股","BK6523":"ESG概念","BK6509":"食品和饮料股","LU0049112450.USD":"FIDELITY PACIFIC \"A\" INC","SG9999002950.SGD":"United Asian Growth Opportunities SGD","Y92.SI":"泰国酿酒","EQR":"资产住宅公司","BK4215":"住宅房地产投资信托","LU0877626530.USD":"FIDELITY ASIA PACIFIC DIVIDEND \"A\" (USD) INC MONTHLY (G)","ROE":"ASTORIA US QUALITY KINGS ETF","BK6080":"酿酒商与葡萄酒商","LU1046422090.SGD":"Fidelity Pacific A-SGD","LU0348798264.USD":"ALLIANZ THAILAND EQUITY\"A\" (USD) INC"},"source_url":"https://simplywall.st/stocks/sg/food-beverage-tobacco/sgx-y92/thai-beverage-shares/news/a-note-on-thai-beverage-public-company-limiteds-sgxy92-roe-a","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2500391741","content_text":"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 Thai Beverage Public Company Limited (SGX:Y92), by way of a worked example.   Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money.  Simply put, it is used to assess the profitability of a company in relation to its equity capital.  View our latest analysis for Thai Beverage  How Is ROE Calculated?  ROE can be calculated by using the formula:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Thai Beverage is:13% = ฿31b ÷ ฿229b (Based on the trailing twelve months to September 2024). The 'return' is the yearly profit.  That means that for every SGD1 worth of shareholders' equity, the company generated SGD0.13 in profit.   Does Thai Beverage Have A Good Return On Equity?  Arguably the easiest way to assess company's ROE is to compare it with the average in its industry.  Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification.   The image below shows that Thai Beverage has an ROE that is roughly in line with the Beverage industry average (12%).  SGX:Y92 Return on Equity January 2nd 2025 So while the ROE is not exceptional, at least its acceptable.    Although the ROE is similar to the industry, we should still perform further checks to see if the company's ROE is being boosted by high debt levels.  If so, this increases its exposure to financial risk.    Our risks dashboardshould have the 2 risks we have identified for Thai Beverage.    The Importance Of Debt To Return On Equity  Companies usually need to invest money to grow their profits.  The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing.  In the first two cases, the ROE will capture this use of capital to grow.  In the latter case, the debt used for growth will improve returns, but won't affect the total equity.  That will make the ROE look better than if no debt was used.  Thai Beverage's Debt And Its 13% ROE  Thai Beverage clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.02.   While its ROE is pretty respectable, the amount of debt the company is carrying currently is not ideal.   Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.     Conclusion    Return on equity is useful for comparing the quality of different businesses.  A company that can achieve a high return on equity without debt could be considered a high quality business.  If two companies have the same ROE, then I would generally prefer the one with less debt.  Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock.  The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too.   So you might want to take a peek at this data-rich interactive graph of forecasts for the company.  But note: Thai Beverage may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. Valuation is complex, but we're here to simplify it.Discover if Thai Beverage might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":390736371707976,"gmtCreate":1736423349039,"gmtModify":1736423353123,"author":{"id":"3552850525395609","authorId":"3552850525395609","name":"moliya","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"hat":"https://static.tigerbbs.com/7b75ce0c34afff716602792a5d0929dd","crmLevel":5,"crmLevelSwitch":1,"idStr":"3552850525395609","authorIdStr":"3552850525395609"},"htmlText":"Good article to understand more. High debt is not good. Does this breweries need high cost to run their business so they have to borrow to run ....","listText":"Good article to understand more. High debt is not good. Does this breweries need high cost to run their business so they have to borrow to run ....","text":"Good article to understand more. High debt is not good. Does this breweries need high cost to run their business so they have to borrow to run ....","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/390736371707976","repostId":2500391741,"repostType":2,"repost":{"id":"2500391741","kind":"highlight","pubTimestamp":1735857225,"share":"https://ttm.financial/m/news/2500391741?lang=&edition=fundamental","pubTime":"2025-01-03 06:33","market":"nz","language":"en","title":"A Note On Thai Beverage Public Company Limited's (SGX:Y92) ROE and Debt To Equity","url":"https://stock-news.laohu8.com/highlight/detail?id=2500391741","media":"Simply Wall St.","summary":"One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will...","content":"<html><body><div><p> 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 Thai Beverage Public Company Limited (SGX:Y92), by way of a worked example.  </p><p> Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money.  Simply put, it is used to assess the profitability of a company in relation to its equity capital. </p><p><span> View our latest analysis for Thai Beverage </span></p><h2> How Is ROE Calculated? </h2><p> <strong>ROE can be calculated by using the formula:</strong> </p><p> Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity </p><p>So, based on the above formula, the ROE for Thai Beverage is:</p><p>13% = ฿31b ÷ ฿229b (Based on the trailing twelve months to September 2024).</p><p> The 'return' is the yearly profit.  That means that for every SGD1 worth of shareholders' equity, the company generated SGD0.13 in profit. </p> <h2> Does Thai Beverage Have A Good Return On Equity? </h2><p> Arguably the easiest way to assess company's ROE is to compare it with the average in its industry.  Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification.   The image below shows that Thai Beverage has an ROE that is roughly in line with the Beverage industry average (12%).  </p><figure><img height=\"316\" loading=\"lazy\" src=\"https://images.simplywall.st/asset/chart/27339980-roe-1-dark/1735857223723\" width=\"333\"/><figcaption>SGX:Y92 Return on Equity January 2nd 2025</figcaption></figure><p> So while the ROE is not exceptional, at least its acceptable.    Although the ROE is similar to the industry, we should still perform further checks to see if the company's ROE is being boosted by high debt levels.  If so, this increases its exposure to financial risk.    Our risks dashboardshould have the 2 risks we have identified for Thai Beverage.   </p><h2> The Importance Of Debt To Return On Equity </h2><p> Companies usually need to invest money to grow their profits.  The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing.  In the first two cases, the ROE will capture this use of capital to grow.  In the latter case, the debt used for growth will improve returns, but won't affect the total equity.  That will make the ROE look better than if no debt was used. </p><h2> Thai Beverage's Debt And Its 13% ROE </h2><p> Thai Beverage clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.02.   While its ROE is pretty respectable, the amount of debt the company is carrying currently is not ideal.   Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.   </p> <h2> Conclusion  </h2> <p> Return on equity is useful for comparing the quality of different businesses.  A company that can achieve a high return on equity without debt could be considered a high quality business.  If two companies have the same ROE, then I would generally prefer the one with less debt. </p><p> Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock.  The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too.   So you might want to take a peek at this data-rich interactive graph of forecasts for the company. </p><p> But note: <strong>Thai Beverage may not be the best stock to buy</strong>. So take a peek at this <strong>free</strong> list of interesting companies with high ROE and low debt. </p><div><h3>Valuation is complex, but we're here to simplify it.</h3><p>Discover if Thai Beverage might be undervalued or overvalued with our detailed analysis, featuring <strong>fair value estimates, potential risks, dividends, insider trades, and its financial condition.</strong></p>Access Free Analysis</div><p><strong>Have feedback on this article? Concerned about the content?</strong> <strong>Get in touch</strong><strong> with us directly.</strong><i> Alternatively, email editorial-team (at) simplywallst.com.</i><i>This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.</i></p></div></body></html>","source":"simplywall_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A Note On Thai Beverage Public Company Limited's (SGX:Y92) ROE and Debt To Equity</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA Note On Thai Beverage Public Company Limited's (SGX:Y92) ROE and Debt To Equity\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-01-03 06:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/sg/food-beverage-tobacco/sgx-y92/thai-beverage-shares/news/a-note-on-thai-beverage-public-company-limiteds-sgxy92-roe-a><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>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. ...</p>\n\n<a href=\"https://simplywall.st/stocks/sg/food-beverage-tobacco/sgx-y92/thai-beverage-shares/news/a-note-on-thai-beverage-public-company-limiteds-sgxy92-roe-a\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://images.simplywall.st/asset/industry/5112000-choice1-main-header/1585186807175","relate_stocks":{"BK4585":"ETF&股票定投概念","LU0048621477.USD":"富达泰国基金A","LU0205439572.USD":"富达亚太股息基金","LU1235295612.USD":"FIDELITY PACIFIC \"A\" (USDHDG) INC","LU1119993845.HKD":"FIDELITY ASIA PACIFIC DIVIDEND \"A\" (HKDHDG) INC","BK4588":"碎股","BK6523":"ESG概念","BK6509":"食品和饮料股","LU0049112450.USD":"FIDELITY PACIFIC \"A\" INC","SG9999002950.SGD":"United Asian Growth Opportunities SGD","Y92.SI":"泰国酿酒","EQR":"资产住宅公司","BK4215":"住宅房地产投资信托","LU0877626530.USD":"FIDELITY ASIA PACIFIC DIVIDEND \"A\" (USD) INC MONTHLY (G)","ROE":"ASTORIA US QUALITY KINGS ETF","BK6080":"酿酒商与葡萄酒商","LU1046422090.SGD":"Fidelity Pacific A-SGD","LU0348798264.USD":"ALLIANZ THAILAND EQUITY\"A\" (USD) INC"},"source_url":"https://simplywall.st/stocks/sg/food-beverage-tobacco/sgx-y92/thai-beverage-shares/news/a-note-on-thai-beverage-public-company-limiteds-sgxy92-roe-a","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2500391741","content_text":"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 Thai Beverage Public Company Limited (SGX:Y92), by way of a worked example.   Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money.  Simply put, it is used to assess the profitability of a company in relation to its equity capital.  View our latest analysis for Thai Beverage  How Is ROE Calculated?  ROE can be calculated by using the formula:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Thai Beverage is:13% = ฿31b ÷ ฿229b (Based on the trailing twelve months to September 2024). The 'return' is the yearly profit.  That means that for every SGD1 worth of shareholders' equity, the company generated SGD0.13 in profit.   Does Thai Beverage Have A Good Return On Equity?  Arguably the easiest way to assess company's ROE is to compare it with the average in its industry.  Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification.   The image below shows that Thai Beverage has an ROE that is roughly in line with the Beverage industry average (12%).  SGX:Y92 Return on Equity January 2nd 2025 So while the ROE is not exceptional, at least its acceptable.    Although the ROE is similar to the industry, we should still perform further checks to see if the company's ROE is being boosted by high debt levels.  If so, this increases its exposure to financial risk.    Our risks dashboardshould have the 2 risks we have identified for Thai Beverage.    The Importance Of Debt To Return On Equity  Companies usually need to invest money to grow their profits.  The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing.  In the first two cases, the ROE will capture this use of capital to grow.  In the latter case, the debt used for growth will improve returns, but won't affect the total equity.  That will make the ROE look better than if no debt was used.  Thai Beverage's Debt And Its 13% ROE  Thai Beverage clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.02.   While its ROE is pretty respectable, the amount of debt the company is carrying currently is not ideal.   Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.     Conclusion    Return on equity is useful for comparing the quality of different businesses.  A company that can achieve a high return on equity without debt could be considered a high quality business.  If two companies have the same ROE, then I would generally prefer the one with less debt.  Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock.  The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too.   So you might want to take a peek at this data-rich interactive graph of forecasts for the company.  But note: Thai Beverage may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. Valuation is complex, but we're here to simplify it.Discover if Thai Beverage might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":1,"commentSize":2,"repostSize":2,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false}}