Analysis of growth ability
The indicators reflecting the growth ability mainly include: sales growth rate, main business profit growth rate, operating profit growth rate and net profit growth rate. The following is the information collected by Bian Xiao on how to analyze the growth ability of listed companies. I hope you like it. )
1. Sales growth rate
Sales growth rate refers to the ratio of the increase of main business income in the reporting period to the income in the base period, which reflects the growth ability of enterprises in sales. Its calculation formula is:
Sales growth rate = main business income growth in the reporting period/total main business income in the base period × 100%.
= (main business income in the reporting period-main business income in the base period)/total main business income in the base period × 100%
The higher the index, the faster the sales growth of enterprise products, the better the sales situation, the better the profit growth trend of enterprises, and the faster the survival and development ability of enterprises is improved. On the other hand, the lower the index, the slower the growth of enterprise product sales, the worse the sales situation, the lack of stamina for enterprise profit growth, and the trend of enterprise profit is not optimistic. This is reflected in the growth of the total income of the main business.
From the sales growth rate index of a single product or service, we can also observe the product or business structure of the enterprise, and then we can also observe the growth of the enterprise. According to the product life cycle theory, the life cycle stage of any product can be divided into four stages. That is, the first stage is the trial sale period, and the product development has been successfully put into normal production. At present, the sales scale is small and the growth is not too fast; The second stage is the growth period, when the product market space is opened and mass production and sales are carried out. At this time, product sales expand and grow rapidly. The third stage is the mature stage, the sales volume is relatively stable, and the growth will not be too fast; The fourth stage is recession, and product sales begin to shrink. According to this principle, with the help of product sales growth rate index, we can roughly see the life cycle stage of products produced and operated by enterprises, and judge the growth of enterprises accordingly.
To comprehensively and correctly analyze and judge the growth trend and level of enterprise sales revenue, it is necessary to make a comparative analysis of the sales growth rate of enterprises in different periods. The reason is that the sales growth rate only refers to the sales situation in a certain year, and the sales growth rate in a certain year may be affected by some accidental and abnormal factors, which cannot reflect the actual sales growth ability of the enterprise.
2. Profit growth rate of main business
The growth rate of main business profit refers to the ratio of the increase of main business profit in the reporting period to the profit of main business in the base period. Its calculation formula is:
Profit growth rate of main business = (profit of main business in reporting period-profit of main business in base period)/profit of main business in base period × 100%
The greater the profit growth rate of the main business, the faster the profit growth of the main business of the enterprise, indicating that the main business of the enterprise is outstanding and the business expansion ability is strong; The smaller the profit growth rate of the main business, the slower the growth rate of the main business of the enterprise, indicating that the development of the main business of the enterprise is stagnant and the business expansion ability is weak.
Analysis of the profit growth rate of main business should be combined with the sales growth rate of enterprises. If the profit growth rate of the main business of an enterprise is higher than the sales growth rate of the enterprise, it means that the products of the enterprise are in the growth stage, the main business is expanding and the profitability of the enterprise is increasing; On the other hand, if the profit growth rate of an enterprise's main business is lower than the sales growth rate, it means that the increase rate of its main business costs, taxes and surcharges exceeds the growth rate of its main business income, indicating that its main business profitability is not strong and its development potential is questionable.
3. Growth rate of operating profit
The growth rate of operating profit refers to the ratio of the change of operating profit in the reporting period to the operating profit in the base period. Its calculation formula is:
Operating profit growth rate = (operating profit in the reporting period-operating profit in the base period)/operating profit in the base period × 100%
The higher the index, the faster the expansion of enterprise production scale, and the greater the possibility of production and sales growth; When this indicator is in a state of stagnation, the sales scale of enterprises is often limited by production capacity, and it is difficult to ensure the growth rate of profitability.
4. Net profit growth rate
The growth rate of net profit refers to the ratio of the change of net profit in the reporting period to the net profit in the base period. Its calculation formula is:
Net profit growth rate = (total net profit in the reporting period-total net profit in the base period)/total net profit in the base period × 100%
The bigger the index, the more the income of the enterprise increases, indicating that the enterprise has outstanding business performance and stronger market competitiveness; The smaller the index, the less the increase of enterprise income, indicating that the enterprise's operating performance is poor and its market competitiveness is weak.
Analysis of the growth rate of enterprise net profit needs to be combined with the growth rate of enterprise sales. If the growth rate of enterprise net profit is higher than the sales growth rate, it means that the profitability of enterprise products is constantly improving, and the enterprise is in a high-speed growth stage with good growth ability; If the net profit growth rate of an enterprise is lower than the sales growth rate, especially the operating profit growth rate, it reflects that the cost of the enterprise has risen more than the sales growth rate, reflecting that the growth ability of the enterprise is not good.
It is not enough to comprehensively analyze the growth rate of net profit of enterprises, nor can it reflect the real trend of net profit growth of enterprises. The correct way to analyze the growth trend of enterprise net profit is to compare and analyze the growth index of enterprise net profit for many years. If the growth rate of enterprise net profit increases for three consecutive years, it shows that the growth ability of enterprise net profit is relatively stable and has a good growth trend; If the growth rate of enterprise's net profit drops sharply for three consecutive years, or does not increase for two years, it shows that the profitability of the enterprise is unstable and does not have a good growth momentum.
The above growth rate indicators examine the growth ability of enterprises from different aspects. In practical application, these four indicators should be interrelated in order to correctly evaluate the growth ability of enterprises. Generally speaking, if an enterprise's sales growth rate, main business profit growth rate, operating profit growth rate and net profit growth rate can continue to grow synchronously, and not lower than the industry average, it can basically be considered that this enterprise has good growth ability.