2. There are several financial leverage ratios: (1) equity ratio. Equity ratio = total liabilities ÷ shareholders' equity. (2) Asset-liability ratio. Asset-liability ratio = total liabilities ÷ total assets (3) ratio of long-term liabilities to long-term capital. The ratio of long-term liabilities to long-term capital = long-term liabilities/long-term capital.

3. Solvency ratio:

(1) Short-term solvency ratio

Short-term debt solvency ratio, also known as liquidity ratio, mainly includes the following types:

Current ratio = (total current assets) ÷ (total current liabilities)

The current ratio shows how much current assets the company has as a guarantee for repayment per yuan of current liabilities. The greater the ratio, the stronger the company's solvency for short-term debts.

Quick ratio = (quick assets) ÷ (current liabilities)

Quick ratio is also an indicator to measure the company's short-term solvency. Quick assets refer to those current assets that can be immediately converted into cash to pay current liabilities, so this figure can better reflect the company's short-term debt solvency than the current ratio.

Proportion of current assets = (amount of each current asset) ÷ (total current assets)

Current assets are composed of many parts. Only when the proportion of liquid assets with strong liquidity is large, the solvency of enterprises is stronger, otherwise even if the current ratio is high, it may not have strong solvency.

(2) Long-term solvency ratio

Long-term debt refers to debt with a maturity of more than one year. Long-term solvency is not only related to the safety of investors, but also reflects the strength of the company's ability to expand its operations.

Ratio of shareholders' equity to liabilities = (total shareholders' equity ÷ total liabilities) × 100%

The ratio of shareholders' equity to liabilities indicates how much self-owned capital is used as repayment guarantee per 100 yuan of liabilities. The greater the value, it means that the public has enough capital to guarantee the repayment of debts.

Debt ratio = (total liabilities/net assets) × 100%

Debt ratio, also known as debt operation ratio, shows that the proportion of creditor's rights and interests in total assets is large, which shows that the company has strong ability to expand its operations and the more fully uses shareholders' rights and interests, but too much debt will affect its repayment ability.

Property right ratio = (total shareholders' equity ÷ net assets) × 100%

The ratio of property rights, also known as the ratio of shareholders' equity, indicates the ratio of shareholders' equity to total assets.

Fixed ratio = (shareholders' equity ÷ fixed assets) × 100%

The fixed ratio indicates how much of the company's fixed assets are purchased with its own funds, which is generally considered to be above 100%.

Ratio of fixed assets to long-term liabilities = (fixed assets/long-term liabilities) × 100%

The ratio of fixed assets to long-term liabilities indicates the ratio of fixed assets to long-term liabilities. Generally speaking, this value should be above 100%, otherwise, the rights and interests of creditors will be difficult to guarantee.

(3) Analysis of growth rate indicators

Growth refers to the company's ability to develop continuously by expanding its operations.

Profit retention rate = (after-tax profit-dividends paid) ÷ (after-tax profit)

The higher the profit retention rate, the better the company's development potential.

Reinvestment rate = (return on capital) × (shareholder profit retention rate)

The reinvestment rate, also known as the internal growth rate, indicates the company's ability to reinvest its surplus income. A large number indicates a strong ability to expand business.

(4) Analysis of efficiency ratio index

Efficiency ratio is an index used to examine the effectiveness of a company in using its assets and its operating efficiency.

Inventory turnover rate = (operating cost) ÷ (average inventory)

The higher the inventory turnover rate, the faster the inventory turnover, the stronger the company's ability to control inventory, the lower the inventory cost and the higher the operating efficiency.

Accounts receivable turnover rate = (operating income) ÷ (average balance of accounts receivable)

The turnover rate of accounts receivable shows the efficiency of the company to recover accounts. A large value shows that the use and management of funds are efficient.

Turnover rate of fixed assets = (operating income) ÷ (average balance of fixed assets)

The turnover rate of fixed assets is used to detect the utilization efficiency of the company's fixed assets. The greater the value, the faster the turnover rate of fixed assets, and the less idle fixed assets.