(1) Determine the financial strength of the enterprise; (2) Evaluate and assess the business performance of enterprises and reveal problems in financial activities; (3) Explore the potential of the enterprise and seek ways to improve the management level and economic benefits of the enterprise; (4) Evaluate the development trend of the enterprise.

Fixed base dynamic ratio = analysis period amount/fixed base period amount x 100%

Period-on-month dynamic ratio = analysis period amount/previous period amount x 100%

composition ratio

efficiency ratio

correlation ratio

serial substitution method

Gap analysis

Precautions: 1. The importance of factor decomposition; 2. The order of factor substitution; 3. The seriality of sequential substitution; 4. The calculation results are hypothetical.

current ratio

quick ratio

cash ratio

xx ratio xxx assets/current liabilities

Assets and liabilities

equity ratio

Equity Multiplier

Relationship between the three: Equity multiplier = 1/(1-Asset-liability ratio) = 1 Equity ratio

Interest coverage ratio

Available bank loan indicators or credit lines, asset quality, contingencies and commitments

Inventory turnover

Accounts receivable turnover ratio

Current asset turnover ratio

Fixed asset turnover rate

total asset turnover ratio

Operating gross profit margin = operating gross profit/operating income, where operating gross profit = operating income - operating cost

Operating net profit margin = net profit/operating income x100%

Net interest rate on total assets = net profit/average total assets x100%

Return on equity = net profit/average net assets =Net profit/average total assets x average total assets x average net assets =Net interest rate on total assets x equity multiplier

Growth amount of xx this year/xx last year

Ending owner’s equity/beginning owner’s equity x 100% after deducting the impact of objective factors

Net income operating index = net operating income/net profit, where net operating income = net profit - non-operating net income

Cash operating index = net cash flow from operating activities/cash generated from operations Cash operating index <1, indicating that the quality of earnings is not good enough

basic earnings per share

diluted earnings per share

Dividends per share = total cash dividends/number of common shares outstanding at the end of the period; dividend payout rate = dividends per share/earnings per share

P/E ratio = market price per share/earnings per share. The higher the P/E ratio, the greater the investment value.

Price-to-book ratio = market price per share/net assets per share, net assets per share = net assets of common shares at the end of the period/number of common shares outstanding at the end of the period.

Return on equity = net interest rate on total assets x equity multiplier = net operating interest rate x total asset turnover rate x equity multiplier

EVA = net operating profit after tax - average capital occupation x weighted average cost of capital

advantage

shortcoming