With comprehensive analysis of financial indicators

Enterprises operating profitability mainly reflects business enterprises the ability to create profits. Reflect the profitability of the enterprise's financial indicators are many, but a single indicator of the analysis, investors tend to make the profitability of the enterprises to determine in a vague state. Here, we have introduced two or more of the linkage between the financial indicators, to evaluate the operating results of current business and future profitability, so as to investors to understand the operation of the status quo enterprises provide a clear analysis of ideas.



   1, liabilities and operating profit growth rate with a comprehensive analysis



   Liabilities, operating rate = long-term liabilities / owner's equity, it should reflect the structure of sources of funding and the independence and stability.



   Profit growth = (current net profit - on the period of net profit) / profit on the period, it reflects the profitability of value-added enterprises.



   We will consider the combination of these indicators can be integrated determine the profitability of the enterprise's growth potential. If both growth, although that business has increased investment in external funding, an increase of certain risks, but the rational use of corporate funds, profit has increased its leverage to bring about a certain corporate profits that borrowing Measures is correct. If the decline at the same time that enterprises in reducing the scale of the debt but also to reduce the level of profitability, its profit potential constraints.



   2, current liabilities rate, liquidity ratio, profit growth with a comprehensive analysis



   Current liabilities rate = current liabilities / assets, liquid assets ratio = current assets / assets, profit growth = (current net profit - on the period of net profit) / profit on the stage



   We will consider the combination of the above indicators look at prospects for corporate profits. If the three indicators at the same time improving that business enterprises to expand production, increase production, has increased profits if the flow of current assets and liabilities increased rates lower, but margins improved, the companies that sell good products, supply, management The situation remains good situation if the current liabilities increased, decreased liquidity, lower margins on the production and operation of enterprises deteriorating situation, enterprises will have financial difficulties if the flow rate of current assets and liabilities rate, the decline in margins at the same time , Notes, corporate production and management business is shrinking, corporate earnings prospects are not bright.



   In sum, we find that enterprises will be reflected by the profitability of the financial indicators associated with analysis, show that if the profitability of the enterprises are weakened, then the profitability of the business potential worthy of our discussion, investors should be treated with caution .



   Case Study



   We will use Wo-listed companies analysis system, use the first method, for example analysis. To-day hotel 000428 December 31, 2002 data as an example, we can see that the liabilities of enterprises operating rate by the end of 2001 rose to 1.59 percent in late 2002 of 11.77 percent, but profit growth of -19.8% The downward trend on the borrowing enterprises to enterprises did not bring the expected rewards.