1, operating income
Operating income is the total income obtained by the company through production, sales or service provision in a certain period of time. Some first-time investors tend to confuse operating income with net income. In fact, the operating income is only the accounts received by the enterprise in the course of operation, without deducting the cost consumption and taxes payable. Net income is the net income of a company after deducting various costs and taxes.
Once an enterprise starts to operate, it can always get a certain income, so the operating income is always positive, while the net income may be negative.
2. Total profit
Total profit is the company's surplus after deducting cost consumption and business tax from operating income, which is what people usually call profit. The relationship between total profit and operating income is: total profit = operating income-cost-business tax. When the total profit is negative, the income of an enterprise after one year's operation can't cover the cost and the business tax payable, which is usually called enterprise profit and loss.
When the total profit is zero, the annual income of the enterprise is just equal to the expenditure, and the enterprise does not lose money or make money, which is usually called breakeven. When the total profit is greater than zero, the annual income of the enterprise is greater than the expenditure, which is usually called enterprise profit.
3. Net profit
Net profit refers to the company's retained profit after paying income tax according to regulations, which is usually called after-tax profit or net income.
The calculation formula of net profit is: net profit = total profit ×( 1- income tax rate) net profit is the final result of enterprise operation, and the more net profit, the better the operating efficiency of the enterprise; If the net profit is small, the operating efficiency of the enterprise will be poor, which is the main index to measure the operating efficiency of the enterprise.
Net profit depends on two factors, one is total profit, and the other is income tax rate. The income tax rate of enterprises is legal, and the higher the income tax rate, the less the net profit.
There are two income tax rates in China. One is the income tax rate of 33% for general enterprises, that is, 33% of the total profits should be turned over to the state finance as tax; The other is the preferential tax rate for foreign-funded enterprises and some high-tech enterprises, and the income tax rate is 15%. When the operating conditions of enterprises are equivalent, the enterprises with lower income tax rate have better operating benefits.
4. Total assets
Total assets refer to all assets that can be used by the company in the course of operation, including its own assets and loan assets.
5. Net assets
Net assets are the company's own capital, and for joint-stock companies, net assets are the property owned by shareholders, which is now commonly referred to as shareholders' equity. Net assets are total assets minus the company's external liabilities.
6. Earnings per share
Earnings per share is the net profit or after-tax profit of each share in a joint-stock company, and its calculation formula is: Earnings per share = sum of after-tax profits of the company/total share capital.
7. Net assets per share
Net assets per share is the net assets enjoyed by each unit share, that is, the net assets owned by each share, and its calculation formula is: net assets per share = net assets of the company (shareholders' equity)/total share capital.
8. Shareholder's equity ratio
Shareholders' equity ratio is the percentage of shareholders' equity (net assets of the company) to total assets, and its calculation formula is: shareholders' equity ratio = (net assets/total assets of the company) × 100%.
9. Debt ratio
The debt ratio is the percentage of the company's liabilities to the total assets, and its common ratio is: debt ratio = (company's liabilities/total assets) × 100%. Since the sum of shareholders' equity and liabilities is the total assets of the company, the relationship between shareholders' equity ratio and the company's debt ratio is: shareholders' equity ratio+debt ratio = 1.
10, ROE
ROE is the net income of a unit's net assets in a certain period, and its calculation formula is: ROE = (net income/net assets) × 100%. The higher the return on net assets, the stronger the company's operating ability.