What are the common financial indicators for enterprises

The three types of financial indicators for enterprises stipulated in China's General Principles of Enterprise Finance are: solvency indicators, including asset-liability ratios, current ratios, and quick ratios; operating capacity indicators, including accounts receivable turnover, inventory turnover; and profitability indicators, including capitalization margins, sales profit margins (profit and tax rate on operating revenues), and cost and expense profit margins.

The main elements of the financial indicators of industrial enterprises include:

1? Fixed assets. Sub-fixed assets original value, net fixed assets, per hundred dollars of fixed assets (original value or net value) to provide profits and so on.

(2) Working capital. Sub-all working capital, fixed working capital, reserve funds, production funds, finished goods funds, currency funds and clearing funds, per 100 yuan of output occupied by the fixed working capital, fixed working capital turnover rate.

(3) cost. Total cost of all products, total cost of comparable products, comparable product cost reduction rate, product unit cost.

(4) profit. Sub-product sales profit, total profit, product sales tax, paid profit, capital profit margin, capital tax rate and so on.

Expanded

Financial indicators advantages and disadvantages:

Traditional performance evaluation mostly use financial indicators, with financial indicators to evaluate the performance of simple and clear.

But using only financial indicators to evaluate the performance of managers has the following shortcomings:

(1) Financial indicators are oriented to the past but do not reflect the future, which is not conducive to evaluating the performance of the enterprise in the ability to create future value.

(2) Financial indicators are easily manipulated, and excessive focus on accounting profits in corporate financial reports allows corporate management to use various methods to manipulate profits.

(3) Financial indicators are mainly derived from financial statement information and do not include most of the factors that affect a company's long-term competitive advantage, such as product quality, the quality and skills of employees, nor do they reflect the business process and customer satisfaction.

Baidu Encyclopedia-Financial Indicators