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Types of index | Indicator name | Definition | Calculation | Variable symbol |
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Label | ST | The company has financial problems and the stock is marked for special treatment (ST) | — | Yes or no |
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Profitability | Net fixed assets | A metric that evaluates the net value of a company’s fixed assets | Total fixed asset purchase price + capital improvements)–(accumulated depreciation + fixed asset liabilities) | X1 |
Operating profit | Its total earnings from its core business functions for a given period | Revenue—operating costs—cost of goods sold (COGS)—other day-to-day expenses | X2 |
Return on total assets (ROTA) | A ratio that measures a company’s earnings before interest and taxes relative to its total net assets | Ebit/average total assets | X3 |
Operating profit margin | A performance ratio that reflects the percentage of profit a company produces from its operations | Operating income/net sales revenue | X4 |
Cost to sales ratio | A financial ratio that compares a company’s expenses generated by sales activity to its revenue | Cost of sales/total revenue | X5 |
Return on equity (ROE) | This index reflects the return level of shareholders’ equity and is used to measure the efficiency of the company’s own capital | Net income/shareholders’ equity | X6 |
Gross profit margin | A measure of profitability that shows the percentage of revenue that exceeds the cost of goods sold | (Net sales—cost of goods sold)/net sales | X7 |
Cost rate | The ratio between the cost of using funds and the amount effectively raised | Total cost/total revenue | X8 |
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Solvency | Current ratio (CR) | A liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year | Current assets/current liabilities | X9 |
Quick ratio (QR) | A measure of a company’s ability to meet its short-term obligations with its most liquid assets | (Current assets—inventories—prepaid expenses)/current liabilities | X10 |
Cash ratio | A liquidity measure that shows a company’s ability to cover its short-term obligations using only cash and cash equivalents | Cash and cash equivalents/current liabilities | X11 |
Debt-to-assets ratio | Showing how much of a business is owned by creditors compared with how much of the company’s assets are owned by shareholders | Total debt/total assets | X12 |
Capitalization ratio | A measure of the proportion of debt in a company’s capital base, its funds from lenders and stockholders | Total debt/capitalization | X13 |
Liquidation value ratio | The ratio of tangible assets to liabilities reflects the company’s ability to pay off all debts | (Liquidation value of assets–book value of liabilities)/total liabilities | X14 |
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Development capability | Main business’s increasing rate of income | A measure of the company’s product life cycle and judge the stage of the company’s development | (Current period revenue—prior period revenue)/prior period revenue | X15 |
Net profit margin ratio | An index used to evaluate the quality of net income | Net profit/revenue | X16 |
Net assets growth rate | A ratio reflects the expansion speed of the capital scale of the enterprise | (Current period net assets—prior period net assets)/prior period net assets | X17 |
Total assets growth rate | An index to analyze the capital accumulation ability and development ability of enterprises in that year | Asset growth/total assets | X18 |
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Cash flow | Cash flow from operating activities | Cash flows generated by all transactions and events other than investment activities and financing activities of the enterprise | Funds from operations + changes in working capital | X19 |
Current assets | Current assets are all the assets of a company that are expected to be sold or used as a result of standard business operations over the next year | Current assets are all the assets of a company that are expected to be sold or used as a result of standard business operations over the next year | X20 |
Current liabilities | Current liabilities are a company’s debts or obligations that are due to be paid to creditors within one year | Current liabilities are a company’s debts or obligations that are due to be paid to creditors within one year | X21 |
Cash flow to sales ratio | Assets that can be realized or utilized by an enterprise within an operating cycle of one year or more | Operating cashflow/net sales | X22 |
Return on assets (ROA) | A measure of net profit generated per unit of assets | Net income/average total assets | X23 |
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Operating capacity | Operating cash flow to net profit ratio | A measure of the current profitability of a business | Operating cash flow/net profit | X24 |
Operating cash flow ratio | The value of cash flow compared to other item | Operating cash flow/current liabilities | X25 |
Closing balance | The total in an account at the end of a reporting period | Net cash flow + opening balance | X26 |
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