Financial indicators

Indicator description

Rationality of earnings per share [10] - [12]

(1) Price earning ratio (PE)

PE = Price per share/Earnings per share

(2) Price/book value ratio (PB)

PB = Price per share/Book value per share

(3) Price-to-sales ratio (PS)

PS = Share price/Sales per share

(4) Earnings per share (EPS)

EPS = After-tax profits/Number of capital stock

Profitability [13]

(5) Return on equity (ROE)

ROE = Net profit/Stockholders’ equity

(6) Return on asset (ROA)

ROA = Net income after tax/Total assets

(7) Operating profit margin (OPM)

OPM = Operating income/Net sales

(8) Net profit margin (NPM)

NPM = Net profit/Sales

Leverage level [14]

(9) Debt-equity ratio (DE)

DE = Total liabilities/Shareholders’ equity

(10) Times interest earned (ICV)

ICV = Earnings Before Interest and Tax/Interest cos

Liquidity [14] [15]

(11) Current ratio (CR)

CR = Current assets/Current liabilities

(12) Quick ratio (QR)

QR = Quick assets/Current liabilities

Efficiency level [15]

(13) Inventory turnover ratio (ITR)

ITR = Sales cost/Average inventory

(14) Accounts receivable turnover ratio (RTR)

RTR = Operating income/Average balance of accounts receivable

Growth ability [15]

(15) Increase rate of business revenue (OIG)

OIG = (Revenue of the current year-revenue of the previous year)/ revenue of the previous year

(16) Net profit growth rate (NIG)

NIG = (After-tax net revenue of the current year-After-tax net revenue of the previous year)/After-tax net revenue of the previous year