An Indicator For Evaluating The Financial Situation Of An Enterprise

< p > sales profit margin: profit level reflecting enterprise sales revenue.

Formula: sales profit margin = gross profit / product sales net income x 100% product sales net income: net sales excluding sales discount, sales discount and sales return.

Profitability: < /p >

< p > < a href= "http://? Www.sjfzxm.com/news/index_c.asp > > total assets return rate < /a >: used to measure the ability of enterprises to use all assets to make profits.

The formula is: total assets return ratio = (gross profit + interest expense) / average assets total x 100% - profitability < /p >

< p > capital yield: it refers to the ability of enterprises to use investors to invest capital to get profits.

Formula: capital yield = net profit / paid capital x 100% - profitability < /p >

< p > a href= "http://? Www.sjfzxm.com/news/index_c.asp" > capital preservation and appreciation rate < /a >: mainly reflects the capital integrity and preservation of investors.

Calculation formula: capital preservation and increment ratio = end owner's equity total / initial owner's equity total * 100% capital maintenance and increment ratio = 100%, for capital preservation, capital preservation and appreciation rate is greater than 100%, for capital appreciation.

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< p > asset liability ratio: used to measure the level of corporate liabilities.

Formula: asset liability ratio = Total Liabilities / total assets x 100% - debt repayment ability < /p >

< p > > a href= "http://? Www.sjfzxm.com/news/index_c.asp" > flow ratio < /a >: the ability to measure an enterprise's debt at a certain point in the near future is also known as the short-term solvency ratio.

Calculation formula: current ratio = current assets / current liabilities * 100% quick ratio: it refers to the ratio of quick assets to current liabilities. It is a measure of the ability of an enterprise to repay its due debts at any time by using realizable assets.

The quick ratio is a supplement to the current ratio.

Formula: quick ratio = quick assets / current liabilities * 100% - liquidity ability < /p >

< p > accounts receivable turnover rate: also known as the collection ratio, used to measure the turnover of accounts receivable.

Formula: accounts receivable turnover = net credit / average receivables balance * 100% credit net = sales income - cash sales - sales returns, discount, discounts.

Due to the fact that business credit information is not disclosed as a commercial secret, receivables turnover is usually based on credit sales and total sales, that is, sales net income.

Average accounts receivable balance = (initial accounts receivable balance + end account receivable balance) 2 - asset management capability < /p >

< p > inventory turnover ratio: used to measure the turnover times of memory assets of enterprises in a certain period, reflecting a scale of the efficiency of the purchase, production and sale balance of enterprises.

Formula = product sales cost / average inventory cost X 100% average inventory cost = (initial inventory cost + end inventory cost) 2 - asset management capability < /p >