(1) Growth rate of main business: that is, the ratio of the main business income of the current period minus the main business income of the previous period and then divided by the main business income of the previous period. Usually, companies with growth are mostly companies with prominent main business and relatively single operation. Therefore, the growth rate of main business income can be used as an indicator to better examine the growth of the company. The high growth rate of main business income shows that the company has a large market demand for products and strong business expansion ability. If a company can maintain the growth rate of its main business income of more than 30% for several years in a row, it can basically be considered that the company has growth.
(2) Profit growth rate of main business: that is, the ratio of the profit of main business in the current period minus the profit of main business in the previous period and then divided by the profit of main business in the previous period. Generally speaking, companies whose main profits grow steadily and account for an increase in the proportion of total profits are in the growth stage. Although the total profit of some companies increased significantly during the year, the profit of main business did not increase correspondingly, or even decreased significantly. The quality of such companies is not high, and it is especially necessary to be vigilant when investing in such companies. There may be huge risks, and there may also be problems such as high asset management costs.
(3) Net profit growth rate: that is, the ratio of the difference between the net profit of the current year and the net profit of the previous year divided by the net profit of the previous period. Net profit is the final result of the company's operating performance. The growth of net profit is the basic feature of the company's growth, which shows that the company has outstanding operating performance and strong market competitiveness. On the other hand, if the net profit growth is very small, even negative, it is not growth.
In addition, the indicators for the analysis of enterprise growth capacity also include:
1. Share capital ratio
Share capital ratio = share capital (registered capital)/total shareholders' equity
This index is used to reflect the expansion ability of enterprises.
2. Proportion of fixed assets
Fixed assets ratio = total fixed assets/total assets
This index is used to measure the production capacity of enterprises and reflect the potential of increasing production.
3. Profit retention rate
Profit retention rate = (after-tax profit-dividend payable)/after-tax profit
This index shows the retention degree of after-tax profits of enterprises, and reflects the expansion ability and loss ability of enterprises. The greater the ratio, the greater the expansion capacity of the enterprise.
4. Reinvestment rate
Reinvestment rate = (after-tax profit-profit payable)/shareholders' equity
This index reflects the growth ability of an enterprise after a business cycle. The greater the ratio, the greater the profit of the enterprise in the current period and the stronger the expansion ability in the future.