Analysis Of Turnover Capability Of Enterprises

The main indicators of assessment are:

1. accounts receivable turnover rate.

Accounts receivable turnover = net credit sales / average accounts receivable balance * 100%

Accounts receivable turnover days = calendar days / accounts receivable turnover rate

Accounts receivable turnover rate reflects the ratio of the sale of claims (i.e. the cumulative amount of accounts receivable) to the average balance of accounts receivable at the end of a certain period.

It is used to test the degree of tightness in the business of displaying and selling goods in the credit link, which reflects the production and operation management of enterprises.

2. inventory turnover.

Inventory turnover, sales cost = sales cost / stock average occupancy x 100%

Inventory turnover days = calendar days / inventory turnover

The inventory turnover rate reflects the degree of use and utilization of enterprise inventory in a certain period. It can measure the level of merchandising and sales capacity of enterprises, and verify whether the current inventory level is appropriate.

3. turnover of current assets.

Turnover of current assets = sales income / average value of current assets * 100%

This index is used to measure enterprise production.

4. fixed assets turnover.

Fixed assets turnover = sales revenue / fixed assets average occupancy x 100%

The index indicates that the value pfer and recovery rate of fixed assets, the greater the ratio, the higher the utilization rate of fixed assets, the better the effect.

Three. Profitability analysis

The purpose of the analysis of enterprise profitability is to observe the enterprise's realization of the total profit and profitability of enterprises in a certain period.

The main indicators to measure the profitability of enterprises are:

1. capital profit rate

Capital profit ratio = total corporate profits / total registered capital * 100%

The index is a measure of enterprise operating results, reflecting the level of profitability of enterprises.

The bigger it is, the bigger the company's profitability.

2. sales profit margin

Sales profit = total profit / product sales x 100%

The index reflects the proportion of profits achieved by enterprises in sales revenue.

The larger the proportion, the higher the profitability of enterprises, the better the economic benefits of enterprises.

3. cost profit margin.

Cost profit ratio = total profit / total cost * 100%

The index reflects the profitability of enterprises after the sale of products, indicating the economic benefits achieved by enterprises in reducing costs.

4. return on assets.

Return on assets = (after tax net interest + interest expense) / average assets total * 100%

The index is used to measure the efficiency of enterprises' use of all economic resources.

Four. Growth ability analysis

The purpose of enterprise growth capability analysis is to illustrate the long-term expansion capability of the enterprise and the strength of the enterprise's future production and operation.

The main indicators to evaluate the growth ability of enterprises are:

1. share of capital.

Share of capital = capital stock (registered capital) / total stockholders' equity

This indicator is used to reflect the expansion capability of a university.

2. the proportion of fixed assets.

Fixed assets ratio = total fixed assets / total assets

This index is used to measure the production capacity of enterprises and reflect the potential of enterprises to increase production.

3. profit retention rate.

Profit retention rate = (after tax profit dividend payable) / after tax profit

This index shows the degree of retained profits after tax, reflecting the expansion and compensation ability of enterprises.

The larger the ratio, the greater the expansion capability of enterprises.

4. reinvestment rate.

Reinvestment rate = (after tax profit payable profit) / shareholders' equity

The index reflects the growth ability of an enterprise after a business cycle.

The larger the ratio, the greater the profit of the company in the current period and the greater expansion capability in the future.

It must be pointed out that the above indicators reflect and evaluate the financial situation and operating results of enterprises from different angles and in different ways. Therefore, we must fully understand the connotation and role of various indicators, and consider the relevance between indicators, so as to make a correct and reasonable judgement on the production and operation of enterprises.