Variable name

Ingredient

Common factor extraction

1

2

3

Net profit margin (%)

0.980

0.167

0.080

Profitability f₁

Return on total assets (annualized) (%)

0.954

0.245

0.132

Earnings per share (yuan)

0.984

0.087

0.122

Total assets turnover

0.153

−0.115

0.946

Operating capacity f₃

Accounts receivable turnover

−0.084

−0.183

0.928

Inventory turnover ratio

0.310

−0.111

0.921

Liquid ratio

0.123

0.960

−0.216

Solvency f₂

Quick ratio

0.165

0.966

−0.180

Cash ratio

0.188

0.965

−0.040