Indicator type

sign

Indicator name

Calculation formula

Financial indicator

Solvency indicator

X1

Current ratio

Current assets/current liabilities

X2

Quick ratio

(current assets − inventory)/current liabilities

X3

Cash ratio

(cash + short-term investment)/current liabilities

X4

Assets and liabilities

(total liabilities/total assets)

X5

Property ratio

(total liabilities/owner’s equity)

X6

Interest multiplier

EBIT/interest expense

Operational capability indicator

X7

Accounts receivable turnover

Net sales revenue/average accounts receivable balance

X8

Inventory turnover

Product cost of sales/average inventory balance

X9

Current asset turnover

Net sales income/average balance of current assets

X10

Fixed asset turnover

Net sales income/net fixed assets

X11

Total asset turnover

Net sales income/average total assets

Profitability indicator

X12

Operating gross profit margin

(operating income − operating costs)/operating income

X13

Net profit margin

Net profit/sales income

X14

Total asset profit margin

Total profit/average amount of assets

X15

Roe

Net profit/average net assets

X16

Operating profit margin

Operating profit/operating income

Development capacity indicator

X17

Total asset growth rate

Total asset growth this year/total assets at the beginning of the year

X18

ROE growth rate

(Return on net assets in the current period − return on net assets in the previous period)/Return on net assets in the previous period

X19

Net profit growth rate

(net profit for the period − net profit for the previous period)/net profit for the previous period

Cash flow indicator

X20

Cash flow ratio

Net cash flow from operating activities/current liabilities

X21

Cash due debt ratio

Net cash flow from operating activities/debts due in the current period

Financial structure indicator

X22

Current debt ratio

Current liabilities/total assets

X23

Fixed asset ratio

Fixed assets/total assets

X24

Equity to debt ratio

Total shareholders’ equity/total liabilities

Non-financial indicator

X25

Industry position

Market share, influence level and technology leadership

X26

Prospects for the industry

State support, degree of technological development, stage of industry development, etc.

X27

Business management level

Business decision-making ability, management system, financial rules and regulations

X28

Business owner’s own quality

Manager’s management knowledge and management experience, education level, etc.

X29

Corporate asset size

Measured by total assets