What indicators does the profitability of an enterprise include? For example.

Profitability indicators mainly include 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 margin Operating profit margin is the ratio of operating profit to operating income of an enterprise in a certain period of time. Its calculation formula is:

Operating profit margin = operating profit/operating income × 100%

The higher the operating profit rate, the stronger the market competitiveness, the greater the development potential and the stronger the profitability of the enterprise.

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 Cost-expense profit rate is the ratio of total profit and total cost of an enterprise in a certain period. Its calculation formula is:

Cost profit rate = total profit/total cost × 100%

In which: total cost = operating cost+business tax and surcharges+sales expenses+management expenses+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. Residual cash guarantee multiple is the ratio of net operating cash flow to net profit in a certain period, which reflects the guarantee degree of cash income in the current net profit of the enterprise and truly reflects the quality of enterprise profit. Its calculation formula is:

Remaining cash guarantee multiple = 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 return on total assets is the ratio of the total remuneration to the average total assets in a certain period of time, which affects the comprehensive utilization effect of enterprise assets. Its calculation formula is:

Return on total assets = earnings before interest and tax total/average total assets × 100%.

In which: total amount of earnings before interest and tax = total profit+interest expense.

Generally speaking, the higher the return on total assets, the better the asset utilization efficiency of the enterprise and the stronger the profitability of the whole enterprise.

5. Return on net assets Return on net assets is the ratio of net profit to average net assets of an enterprise in a certain period, which reflects the investment income level of its own funds. Its calculation formula is:

Return on net assets = net profit/average assets × 100%

In which: average net assets = (number of owners' equity at the beginning of the year+number of owners' equity at the end of the year) /2

It is generally believed that the higher the rate of return on net assets, the stronger the ability of an enterprise's own capital to obtain income, the better the operating efficiency, and the higher the degree of protection for the interests of enterprise investors and creditors.

6. Return on capital Return on capital is the ratio of net profit to average capital (i.e. capital investment and its capital premium) of an enterprise in a certain period, which 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+capital reserve at the end of the year+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 Earnings per share, also known as profit per share or earnings per share, are performance evaluation indicators that reflect the corporate profits or corporate losses that ordinary shareholders can enjoy 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.

Among them, the weighted average number of issued ordinary shares in the current period = the number of issued ordinary shares in the initial period+the number of newly issued ordinary shares in the current period × the issuance time/reporting period time-the number of repurchased ordinary shares in the current period × the repurchase time/reporting period time (the issuance time, reporting period time and repurchase time are generally calculated in days, which can also be simplified monthly without affecting the calculation results).

Diluted earnings per share is calculated by adjusting the numerator and denominator of basic earnings per share on the basis of considering the dilution effect of potential common stock.

The higher the earnings per share, the stronger the company's profitability.

8. Dividends per share Dividends per share are the ratio of the total cash dividends of common shares issued by listed companies this year to the total number of common shares at the end of the year, reflecting the accumulation and distribution of current profits of listed companies. Its calculation formula is:

Dividend per share = total cash dividend of common stock/total common stock at the end of the year.

9. P/E ratio P/E ratio is the multiple of the price of common stock per share of listed companies equivalent to the earnings per share, which reflects the price that investors are willing to pay for the net profit per share of listed companies and can be used to estimate the investment income and risk of stocks. Its calculation formula is:

P/E ratio = price per share of common stock/earnings per share of common stock

Generally speaking, a high P/E ratio indicates that investors are optimistic about the company's development prospects and are willing to pay higher prices for the company's shares. However, the high P/E ratio of a stock also means that the investment risk of this stock is high.

10, net assets per share, net assets per share, is the ratio of the listed company's net assets (i.e. shareholders' equity) to the total number of ordinary shares at the end of the year. Its calculation formula is:

Net assets per share = year-end shareholders' equity/total number of common shares at year-end.