A. Operating profit
B, interest guarantee multiple
C. Return on equity
D, cost profit rate
E. net profit
Extended data
It mainly includes six items: operating profit rate, cost profit rate, surplus cash guarantee multiple, return on total assets, return on net assets and return on capital. In practice, listed companies often use earnings per share, dividends per share, price-earnings ratio, net assets per share and other indicators to evaluate their profitability.
1. Operating profit rate: the ratio of operating profit to operating income of an enterprise in a certain period. The calculation formula is: operating profit rate = operating profit/operating income × 100%.
In practice, indicators such as gross profit margin and net profit margin are often used to analyze the profitability of enterprises.
The calculation formula is as follows:
Gross sales margin = (sales revenue-cost of sales)/sales revenue × 100%
Net profit rate of sales = net profit/sales revenue × 100%
2. Cost-expense profit rate: the ratio of total profit to total cost of an enterprise in a certain period.
The calculation formula is: cost profit rate = total profit/total cost × 100%.
In which: total cost = operating cost, business tax and additional sales expenses, management expenses and financial expenses.
The higher the profit rate of cost, the smaller the cost paid by the enterprise to obtain profit, the better the cost control and the stronger the profitability.
3. Remaining cash guarantee multiple: the ratio of net operating cash flow to net profit of an enterprise in a certain period reflects the guarantee degree of cash income in the current net profit of the enterprise and truly reflects the quality of enterprise income.
Its calculation formula is: multiple of remaining cash guarantee = net operating cash flow/net profit.
Generally speaking, when the current net profit of an enterprise is greater than 0, the remaining cash guarantee multiple should be greater than 1. The larger this indicator is, the greater the contribution of net profit generated by operating activities to cash.
4. return on total assets: The ratio of total income to average total assets in a certain period affects the comprehensive utilization effect of enterprise assets. The calculation formula is: return on total assets = total earnings before interest and tax/average total assets × 100%.
In which: total amount of earnings before interest and tax = total profit interest expense.
5. Return on net assets: The ratio of net profit to average net assets of an enterprise in a certain period reflects the investment income level of its own funds.
The calculation formula is: ROE = net profit/average net assets × 100%.
In which: average net assets = (number of owners' equity at the beginning of the year and number of owners' equity at the end of the year) /2
6. Return on capital: The ratio of net profit to average capital (i.e. capital investment and its capital premium) of an enterprise in a certain period reflects the actual return on investment of the enterprise.
The calculation formula is as follows: return on capital = net profit/average capital × 100%.
In which: average capital = (paid-in capital at the beginning of the year, paid-in capital at the end of the year and capital reserve at the end of the year) /2.
The above capital reserve only refers to the capital premium (or equity premium).
7. Earnings per share: a performance evaluation index reflecting the corporate profits or corporate losses that ordinary shareholders can enjoy by holding each share. Calculation of earnings per share includes basic earnings per share and diluted earnings per share.
The calculation formula of basic earnings per share is: basic earnings per share = net profit attributable to ordinary shareholders in the current period/weighted average of ordinary shares issued in the current period.