1. General classification and calculation of commonly used financial indicators \xd\ 1. Solvency indicators \xd\ (1) Short-term solvency indicators \xd\ 1. Current ratio = current assets ÷ current liabilities \xd\ 2. Quick ratio = quick assets \ xd \. (II) Long-term solvency index \xd\ 1. Asset-liability ratio = total liabilities \xd\ 2. Property right ratio = total liabilities \xd\ 2. Operational capacity index \xd\ (I) Operational capacity index of human resources \xd\ labor efficiency = income from main business. (II) Operational capacity index of means of production \xd\ 1. Current assets turnover index \xd\ (1) Accounts receivable turnover rate (times) = net income from main business ÷ average balance of accounts receivable \xd\ average collection period = average accounts receivable ×36÷ net income from main business \xd\ (2) Inventory turnover rate. Inventory turnover days = average inventory ×36÷ main business cost \xd\ (3) current assets turnover rate (times) = net income from main business ÷ average total current assets \xd\ current assets turnover period (days) = average total current assets × 36 \xd\ 2. Fixed. 3. Turnover rate of total assets = net income from main business ÷ average total assets \xd\ III. Profitability index \xd\ (I) General indicators of enterprise profitability \xd\ 1. Profit rate of main business = profit ÷ net income from main business \xd\ 2. Profit rate of cost and expense = profit ÷ cost and expense \. 3. Return on net assets = net profit ÷ average net assets ×1% \xd\ 4. Capital preservation and appreciation rate = year-end owner's equity after deducting objective factors \ 1% equity at the beginning of the year \xd\ (2) indicators of social contribution ability \xd\ 1. Social contribution rate = total social contribution of enterprises ÷. 2. Social accumulation rate = total paid-in state finance ÷ total social contribution of enterprises \xd\ IV. Development ability index \xd\ 1. Sales (business) growth rate = sales (business) growth this year ÷ total sales (business) income last year ×1% \xd\ 2. Capital accumulation rate = 3. Growth rate of total assets = total assets growth this year ÷ total assets at the beginning of the year ×1% \xd\ 4. New rate of fixed assets = average net value of fixed assets \ average original value of fixed assets ×1% \xd\ 2. Specific application analysis of common financial indicators \xd\ 1. Liquidity ratio \xd\ Liquidity. \xd\ (1) Current ratio \xd\ Formula: Current ratio = total current assets/total current liabilities \xd\ Meaning: It reflects the enterprise's ability to repay short-term debts. The more current assets and the less short-term debts, the greater the current ratio and the stronger the short-term solvency of enterprises. \xd\ Analysis prompt: Below the normal value, the short-term risk of debt of the enterprise is larger. In general, the business cycle, the amount of accounts receivable in current assets and the turnover rate of inventory are the main factors affecting the current ratio. \xd\ (2) Quick ratio \xd\ Formula: Quick ratio = (total current assets-inventory)/total current liabilities \xd\ Conservative quick ratio =.8 (monetary fund+short-term investment+notes receivable+net accounts receivable)/current liabilities \xd\ Meaning: It can better reflect the repayment of enterprises than the current ratio. Because the current assets also include the inventory that is slow to realize and may have depreciated, the current assets are deducted from the inventory and then compared with the current liabilities to measure the short-term solvency of the enterprise. \xd\ Analysis tip: A quick ratio below 1 is usually considered as low short-term solvency. An important factor affecting the credibility of quick ratio is the liquidity of accounts receivable. Accounts receivable on the books may not all be realized and may not be very reliable. \xd\ General tips for liquidity analysis: \xd\ (1) Factors to increase liquidity: available bank loan indicators; Long-term assets ready to be realized soon; Reputation of solvency. \xd\ (2) Factors that weaken liquidity: unrecorded contingent liabilities; Contingent liabilities arising from guarantee liability. \xd\ 2. Asset management ratio \xd\ (1) Inventory turnover rate \xd\ Formula: Inventory turnover rate = product sales cost/[(opening inventory+ending inventory) /2] \xd\ Meaning: Inventory turnover rate is the main indicator of inventory turnover rate. Increasing inventory turnover rate and shortening business cycle can improve the liquidity of enterprises. \xd\ Analysis prompt: The inventory turnover rate reflects the inventory management level. The higher the inventory turnover rate, the lower the inventory occupancy level, the stronger the liquidity, and the faster the inventory can be converted into cash or accounts receivable. It not only affects the short-term solvency of enterprises, but also is an important content of the whole enterprise management. \xd\ (2) inventory turnover days \xd\ Formula: inventory turnover days =36/ inventory turnover rate \xd\ =[36* (inventory at the beginning+inventory at the end) /2]/ product sales cost \xd\ Meaning: the number of days it takes for an enterprise to purchase inventory, put it into production and sell it. Increasing inventory turnover rate and shortening business cycle can improve the liquidity of enterprises. \xd\ Analysis prompt: the inventory turnover rate reflects the inventory management level. The faster the inventory turnover rate, the lower the inventory occupancy level, the stronger the liquidity, and the faster the inventory can be converted into cash or accounts receivable. It not only affects the short-term solvency of enterprises, but also is an important content of the whole enterprise management. \xd\ (3) Accounts receivable turnover rate \xd\ Definition: the average number of times accounts receivable are converted into cash during the specified analysis period. \xd\ Formula: accounts receivable turnover rate = sales revenue/[(accounts receivable at the beginning+accounts receivable at the end) /2] \xd\ Meaning: the higher the accounts receivable turnover rate, the faster it will be recovered. On the contrary, it shows that working capital is too sluggish in accounts receivable, which affects normal capital turnover and solvency. \xd\ Analysis prompt: The turnover rate of accounts receivable should be considered in combination with the operation mode of the enterprise. The use of this indicator can not reflect the actual situation in the following situations: first, enterprises that operate seasonally; Second, the installment payment settlement method is widely used; Third, a large number of cash-settled sales are used; Fourth, a large number of sales at the end of the year or a sharp decline in sales at the end of the year. \xd\ (4) average collection period \xd\ Definition: indicates the time required for an enterprise to obtain the right of accounts receivable, recover the money and convert it into cash. \xd\ Formula: average collection period =36/accounts receivable turnover rate = (accounts receivable at the beginning+accounts receivable at the end) /2]/product sales revenue \xd\ Meaning: the higher the accounts receivable turnover rate, the faster it will be recovered. On the contrary, it shows that working capital is too sluggish in accounts receivable, which affects normal capital turnover and solvency. \xd\ Analysis prompt: The turnover rate of accounts receivable should be considered in combination with the operation mode of the enterprise. The use of this indicator can not reflect the actual situation in the following situations: first, enterprises that operate seasonally; Second, the installment payment settlement method is widely used; Third, a large number of cash-settled sales are used; Fourth, a large number of sales at the end of the year or a sharp decline in sales at the end of the year. \xd\ (5) business cycle \xd\ formula: business cycle = inventory turnover days+average collection period \xd\ ={[ (opening inventory+ending inventory) /2]* 36}/ product sales cost+{[(opening accounts receivable+ending accounts receivable) /2]* 36}/. Under normal circumstances, the business cycle is short, indicating that the capital turnover speed is fast; The long business cycle indicates that the capital turnover rate is slow. \xd\ Analysis Tip: Generally, the business cycle should be analyzed together with the inventory turnover and accounts receivable turnover. The length of the business cycle not only reflects the asset management level of the enterprise, but also affects the solvency and profitability of the enterprise. \xd\ (6) Current Assets Turnover Rate \xd\ Formula: Current Assets Turnover Rate = Sales Revenue/[(Current Assets at the Beginning and Current Assets at the End) /2] \xd\ Meaning: Current Assets Turnover Rate reflects the turnover rate of current assets, and the faster the turnover rate, the relative saving of current assets, which is equivalent to expanding the investment of assets and enhancing the profitability of enterprises; To slow down the turnover rate, it is necessary to supplement the current assets to participate in the turnover, which will waste assets and reduce the profitability of enterprises. \xd\ Analysis Tip: The turnover rate of current assets should be analyzed together with inventory and accounts receivable, and used together with indicators reflecting profitability, which can comprehensively evaluate the profitability of enterprises. \xd\ (7) Total assets turnover rate \xd\ Formula: Total assets turnover rate = sales revenue/[(total assets at the beginning+total assets at the end) /2] \xd\ Meaning: this indicator reflects the turnover rate of total assets, and the faster the turnover, the stronger the sales capacity. Enterprises can adopt the method of small profits but quick turnover to speed up asset turnover and increase the absolute profit. \xd\ Analysis prompt: The total assets turnover index is used to measure the ability of enterprises to make profits by using assets. Often used together with indicators reflecting profitability to comprehensively evaluate the profitability of enterprises. \xd\ 3. Debt ratio \xd\ Debt ratio is the ratio reflecting the relationship between debt and assets and net assets. It reflects the enterprise's ability to pay long-term debts due. \xd\ (1) Asset-liability ratio \xd\ Formula: Asset-liability ratio = (total liabilities/total assets) *1% \xd\ Meaning: It reflects the ratio of capital provided by creditors to total capital. This indicator is also known as the leverage ratio. \xd\ Analysis hint: The greater the debt ratio, the greater the financial risks faced by enterprises and the stronger their ability to obtain profits. If enterprises are short of funds and rely on debts to maintain, resulting in a particularly high asset-liability ratio, risk of debt should pay special attention. The asset-liability ratio is 6%-7%, which is reasonable and steady; When it reaches 85% or above, it should be regarded as an early warning signal, and enterprises should pay enough attention to it. \xd\ (2) Equity ratio \xd\ Formula: Equity ratio = (total liabilities/shareholders' equity) *1% \xd\ Meaning: It reflects the relative proportion of capital provided by creditors and shareholders. Reflect whether the capital structure of the enterprise is reasonable and stable. At the same time, it also shows that the capital invested by creditors is protected by shareholders' rights and interests. \xd\ Analysis hint: Generally speaking, a high equity ratio is a high-risk and high-reward financial structure, while a low equity ratio is a low-risk and low-reward financial structure. From the perspective of shareholders, in the period of inflation, enterprises can transfer losses and risks to creditors by borrowing; In the period of economic prosperity, debt management can get extra profits; In the period of economic contraction, borrowing less can reduce the interest burden and financial risks. \xd\ (3) Tangible net debt ratio \xd\ Formula: Tangible net debt ratio = [total debt/(shareholders' equity-intangible assets net value) ]*1% \xd\ Meaning: the extension of the property right ratio index reflects the degree to which the capital invested by creditors is protected by shareholders' equity in enterprise liquidation more cautiously and conservatively. Regardless of the value of intangible assets, including goodwill, trademarks, patents and non-patented technologies, they may not be used to pay debts. For the sake of prudence, they are all regarded as non-repayable. \xd\ Analysis prompt: From the perspective of long-term solvency, the lower ratio indicates that the enterprise has good solvency and the debt scale is normal. \xd\ (4) Earned interest multiple \xd\ Formula: Earned interest multiple = earnings before interest and tax/interest expense \xd\ = (total profit+financial expense)/(interest expense in financial expense+capitalized interest) \xd\ Usually an approximate formula can also be used: \xd\ Earned interest multiple = (total profit) As long as the multiple of interest earned is large enough, the enterprise has sufficient ability to pay interest. \xd\ Analysis prompt: Enterprises must have a large enough earnings before interest and tax to ensure that they can afford capitalized interest. The higher this indicator is, the smaller the debt interest pressure of the enterprise is. \xd\ 4. Profitability ratio \xd\ Profitability is the ability of an enterprise to earn profits. Both investors and debtors are very concerned about this project. When analyzing profitability, factors such as abnormal items such as securities trading, business items that have been or will be stopped, special items such as major accidents or legal changes, and cumulative impact caused by changes in accounting policies and financial systems should be excluded. \xd\ (1) Net profit rate of sales \xd\ Formula: Net profit rate of sales = net profit/sales revenue *1% \xd\ Meaning: This indicator reflects the net profit per yuan of sales revenue. Represents the income level of sales revenue. \xd\ Analysis prompt: While increasing sales revenue, enterprises must obtain more net profit accordingly in order to keep the net sales profit rate unchanged or improve. The net profit rate of sales can be decomposed into sales gross profit rate, sales tax rate, sales cost rate and expense rate during sales. \xd\ (2) Gross profit margin of sales \xd\ Formula: Gross profit margin of sales = [(sales revenue-sales cost)/sales revenue ]*1% \xd\ Meaning: It indicates how much money can be used for expenses in various periods and profit formation after deducting sales cost for each yuan of sales revenue. \xd\ Analysis prompt: The gross sales margin is the initial basis of the enterprise's net sales profit rate, so it is not enough if it is not large enough.