The rate of capital preservation and appreciation refers to the proportion of owners' equity at the beginning of the year after deducting the objective factors of increase or decrease. This index represents the actual increase or decrease of enterprise capital under the enterprise's own efforts, and is an auxiliary index to evaluate the financial benefits of enterprises. It reflects the safety and growth of investors' capital investment in enterprises. The higher the index, the better the capital preservation of the enterprise, the faster the growth of the owner's equity, the more secure the creditor's rights and debts, and the stronger the development potential of the enterprise.

It shows that the enterprise not only realized capital preservation through the current operation, but also increased its capital by 36%. As for the 40% increase in owner's equity at the end of the period compared with that at the beginning of the period, besides capital appreciation, it may also be caused by investors' increased investment or other reasons. Capital preservation is the basis of value-added, and the meaning of capital preservation should be the preservation of real value when prices rise, not the preservation of nominal value. Considering the impact of rising prices on capital preservation, only the current net profit is not lower than the net interest rate in the general price balance sheet can we intuitively understand the real appreciation of the capital preservation and appreciation index.

Overcoming the limitation of capital preservation and appreciation, investors can not only know the degree of protection of their own rights and interests, but also check the performance of the entrusted responsibilities of operators and comprehensively evaluate the economic benefits of enterprises. The rate of capital preservation and appreciation refers to the proportion of owners' equity at the beginning of the year after deducting objective factors. The calculation formula of capital preservation and appreciation rate is: capital preservation and appreciation rate = (owner's equity at the end of the year ÷ owner's equity at the beginning of the year) × 100%. It reflects the safety and growth of investors' capital investment in enterprises. Generally speaking, the higher the index data, the better.

The rate of capital preservation and appreciation is a financial index, an index to analyze the efficiency and safety of enterprise capital operation, and an important index to assess the economic benefits of enterprises by the Ministry of Finance. The so-called capital preservation and appreciation rate refers to the ratio of the owner's equity at the end of the year to the owner's equity at the beginning of the year after deducting a considerable increase or decrease factor. The capital preservation and appreciation rate can reflect the preservation and appreciation of our investment enterprises. Theoretically, the higher the rate of capital preservation and appreciation, the higher the degree of capital security, the faster the growth of owners' equity and the stronger the development of enterprises.