Detecting Falsified Financial Statements Using a Hybrid SM-UTADIS Approach : Empirical Analysis of Listed Traditional Chinese Medicine Companies in China

Table 1

Definition and measurement of financial ratios.

Notation	Definition of ratio	Measurement
	Return on equity (ROE)
	Earnings before interest and taxes to return on assets (EBIT ROA)
	Return on assets	[Net income + interest  (1 − tax rate)]/Total assets
	Net profit to total operating income	Net profit/Total operating income
	Operating profit to total operating income	Operating profit/Total operating income
	Operating profit ratio
	Current ratio	Current assets/Current liabilities
	Quick ratio
	Growth rate of net profit
	Growth rate of net assets
	Total assets turnover ratio	Revenue/Average total assets
	Ratio of liabilities to assets	Total debts/Total assets