Calculation Formula, Analysis And Explanation Of Commonly Used Financial Indicators

I. Analysis of debt paying ability indicators

(1) analysis of short-term solvency

The short-term debt paying ability of enterprises is mainly measured by current ratio, quick ratio and cash flow liability ratio.

1. mobile ratio

Liquidity ratio = current assets / current liabilities

Significance: reflecting the ability of enterprises to repay short-term debts. The higher the liquidity ratio, the stronger the short-term debt paying ability of enterprises. Internationally, it is generally considered that the lower limit of the mobile ratio is 100%, and the current ratio is equal to 200%.

The analysis indicates that the risk of short-term debt repayment is larger than the normal value. Generally speaking, the operating cycle, the amount of accounts receivable in current assets and the turnover speed of inventory are the main factors that affect the turnover ratio.

2. quick ratio

Quick ratio = quick assets / current liabilities

Significance: the higher the quick ratio, the stronger the ability of enterprises to repay current liabilities. Because current assets include slow and possibly depreciated stocks, the current assets are deducted from inventories and then compared with current liabilities to measure the short-term solvency of enterprises. It is generally considered that the ratio of quick action to 100% is more appropriate.

The analysis indicates that the quick ratio below 1 is generally considered to be a short-term debt paying ability. The important factor affecting the credibility of quick ratio is the liquidity of accounts receivable. Accounts receivable on the books may not always be realizable, nor will they be very reliable.

3. cash flow liabilities ratio

Cash flow liabilities ratio = annual operating cash flow / year-end current liabilities

Significance: the greater the index, the more cash flow generated by business activities, and the more enterprises can repay debts on time.

The short term solvency analysis indicates:

(1) factors that increase liquidity: available bank loan indicators; long term assets ready for quick liquidation; reputation for solvency.

(2) factors that weaken Liquidity: non recorded contingent liabilities; contingent liability arising from guaranty liability.

(two) long term solvency analysis

The long-term debt paying ability of enterprises is mainly measured by asset liability ratio, property rights ratio and interest multiplier three.

1. asset liability ratio

Asset liability ratio = Total Liabilities / total assets

Significance: reflects the ratio of capital provided by the creditor to total capital. This index is also known as the ratio of debt to business. The smaller the asset liability ratio, the stronger the long-term debt paying ability of enterprises.

The analysis indicates that the greater the debt ratio, the greater the financial risk faced by enterprises, and the stronger the ability to obtain profits. If the enterprises are short of funds and rely on debt maintenance, the debt ratio will be particularly high, so the debt risk should be paid special attention to. The ratio of assets and liabilities is between 55% and 65%, which is more reasonable and stable. When reaching 80% or more, it should be regarded as an early warning signal, and enterprises should pay enough attention to it.

2. property rights ratio

Equity ratio = Total Liabilities / owners' equity

Significance: reflecting the relative proportion of capital provided by creditors and shareholders. It reflects whether the capital structure of an enterprise is reasonable and stable. At the same time, it shows that creditors' capital invested is protected by shareholders' rights and interests.

Analysis hints: Generally speaking, Property right ratio Gao is a highly risky and highly remuneration financial structure with low property rights ratio and a low risk and low remuneration financial structure. From shareholders, in the period of inflation, enterprises can spanfer losses and risks to creditors by borrowing money. During the boom period, debt management can get extra profits; in the period of economic recession, less debt can reduce interest burden and financial risk.

3. interest protection multiple

Interest protection multiplier = total pre tax profit / interest expense = (gross profit + financial expense) / (interest expense + capitalized interest in financial expense)

Significance: enterprise operation The ratio of business income to interest expense is used to measure the ability of enterprises to repay interest on loans. As long as the interest guarantee ratio is large enough, the enterprise has sufficient capacity to pay interest.

The analysis indicates that enterprises must have enough pre tax profit before they can afford to pay capitalized interest. The higher the index, the smaller the debt interest pressure of enterprises.

　　 Two. Operational capability Index analysis

(1) analysis of human resources operation capability

Human resource operation capacity is usually analyzed by labor efficiency index.

Labor efficiency = operating income or net output value / average number of employees

The analysis indicates that the evaluation of enterprise labor efficiency is mainly based on a comparative method, for example, the actual labor efficiency is compared with the enterprise's planning level, the advanced level of history, or the average advanced level of the same industry.

(two) analysis of operating capacity of means of production

The operation capacity of the means of production is actually the operation capacity of the enterprise's total assets and its constituent elements. The strength of assets operation depends on the turnover speed of assets, usually expressed by turnover rate and turnover period. Turnover rate is the ratio of turnover and average balance of assets in a certain period of time. It reflects the turnover times of enterprise assets in a certain period. The turnover period is the product of the reciprocal of the turnover times and the number of days in the calculation period, reflecting the number of days required by the turnover of assets once.