target | first-level indicator | Secondary indicators | measurement method |
financial flexibility | cash indicator | Cash holdings | (Money Funds + Trading Financial Assets)/Average Total Assets |
Cash Dividend Coverage Multiple | Net operating cash inflow per share/cash dividend per share | ||
Reinvested Cash Ratio | Net cash flow from operating activities/(fixed assets + long-term investment + other funds + working capital) | ||
Leverage Indicator | Unused Debt Capacity | 1-Asset-liability ratio | |
Long-term gearing ratio | Non-current liabilities/(non-current liabilities + shareholders’ equity) | ||
Interest-bearing debt ratio | (Short-term borrowings + long-term borrowings due within 1 year + long-term borrowings + bonds payable + interest payable)/liabilities | ||
Financing Cost Indicator | Z-score | Z = 1.2M1 + 1.4M2 + 3.3M3 + 0.6M4 + M5, where, M1 = working capital/assets; M2 = retained earnings/assets; M3 = earnings before interest and taxes/assets; M4 = market value/book value of liabilities; M5 = sales revenue/assets |