Main financial indicators The main financial indicators include: solvency indicators, asset-liability management indicators, profitability indicators, growth indicators and cash flow indicators. (1) solvency indicator ① Short-term solvency indicator Short-term solvency is the ability of an enterprise to pay its current liabilities in the next year and an important indicator to measure whether its financial situation is healthy or not. Users such as corporate creditors, investors and raw material suppliers are usually very concerned about the short-term solvency of enterprises. ☆ Current ratio Current ratio = Current assets/Current liabilities The greater the index value, the stronger the short-term solvency of the enterprise. The index value is usually 2. ☆ Quick ratio Quick ratio = (monetary fund+short-term investment+notes receivable+accounts receivable within one year)/The higher the quick ratio of current liabilities, the more secure the future solvency of the enterprise. The index value is generally 1. ☆ Cash ratio Cash ratio = (monetary fund+short-term investment)/current liabilities This is the most conservative short-term solvency indicator. ☆ Working capital Working capital = current assets-current liabilities index value is less than 0, indicating that the company is in danger of being unable to repay short-term liabilities due. This indicator is moderate. ☆ Current liabilities Net cash flow ratio from operating activities Current liabilities Net cash flow ratio from operating activities = Net cash flow from operating activities/Current liabilities The bigger the indicator, the better. 2 Long-term solvency indicator Long-term solvency is the company's ability to pay interest on debt and repay the principal on time. In the normal production and operation of enterprises, enterprises can not rely on selling assets to repay long-term debts, but need to invest long-term loans in high-return projects in order to obtain profits to repay due debts. Long-term solvency mainly analyzes the ability of enterprises to pay the due principal and interest of long-term liabilities from the perspective of maintaining a reasonable debt equity structure. ☆ Asset-liability ratio Asset-liability ratio = average total liabilities/average total assets The smaller the ratio, the stronger the long-term solvency of the enterprise. The index value should not be higher than 70%. Warning: If the asset-liability ratio is > 1, the enterprise is insolvent and in danger of bankruptcy. ☆ Debt-to-equity ratio Debt-to-equity ratio = total liabilities/shareholders' equity, also known as property rights ratio, which reflects the protection degree of owners' equity to creditors' rights and interests. Reflect the long-term solvency of enterprises from another angle. ☆ Shareholder's equity ratio = Shareholder's equity/total assets. The higher the index, on the one hand, it reflects the smaller the operating assets of the enterprise, but on the other hand, it also reflects that the enterprise has not made full use of debt funds, and there is room for using financial leverage. ☆ Debt ratio of tangible assets = total liabilities/(total assets-intangible assets and other assets-prepaid expenses-net loss of current assets to be processed-net loss of fixed assets to be processed-liquidation of fixed assets) This is a conservative indicator to measure long-term solvency. ☆ Debt-to-tangible net worth ratio Debt-to-tangible net worth ratio = total liabilities/(shareholders' equity-intangible assets) This is a conservative indicator to measure long-term solvency. ☆ Interest guarantee multiple = pre-tax profit and interest/current interest expense interest guarantee multiple is an index to measure the enterprise's ability to pay due interest. The higher the index, the better. Warning: If the interest guarantee multiple