How to properly analyze corporate profitability

Profitability Analysis \x0d\ 1, the core indicators \x0d\ 1) capital margin = total profit / total capital \x0d\, also known as the rate of return on capital, reflecting the profitability of capital \x0d\ 2) net profit from sales (net operating profit) = net profit / sales revenue \x0d\ Reflects how much net profit is realized for every 1 yuan of revenue \x0d\ 3) operating profit and tax ratio = ( Total Profit + Sales Tax) / Operating Income\x0d\ Reflects how much profit and tax is realized for every $1 of operating income\x0d\ 4) Cost and Expense Profitability = Total Profit / Total Costs / Costs \x0d\ Examines the relationship between costs and expenses of an enterprise and its profits, and explains how much profit is realized for $1 of costs \x0d\ 5) Remuneration for Assets (Earnings) Ratio (Productivity Ratio) = (Net Earnings + Interest Expense + Income Tax) / Average Total Assets \x0d\ 5) Return on Assets (Productivity Ratio) = (Net Income + Interest Expense + Income Tax) the relationship between fixed asset occupancy and profit\x0d\ 9) Net Income to Sales Ratio = (Net Income + Interest Expense) / Sales Revenue\x0d\ Reflecting the amount of income received by each unit, it shows the profitability of the business\x0d\ 10) Owners' Equity to Sales Ratio = Owners' Income / Sales Revenue\x0d\ Observing the capital strength of each unit of sales\x0d\ 11) Level of Expenses Speed of Change = (Reporting Period Expense Level - Base Period Expense Level) / Base Period Expense Level\x0d\ Examine the trend of change in the level of corporate expenses\x0d\ 12) Cost of Sales, Expense Ratio = Total Costs and Expenses / Sales Revenue\x0d\ Examine how much costs and expenses are consumed for each dollar of sales revenue\x0d\ 13) Equity Coefficient = Total Assets / Ownership Total Equity\x0d\ Examining how many times the total assets are owner's equity\x0d\ 14) Equity Compensation (Income) Ratio = Net Assets / Owner's Equity\x0d\ It is the most representative and comprehensive income indicator in the U.S. DuPont system of financial indicators. Examining the remuneration obtained from investment\x0d\\x0d\ 2. Indicators of Joint Stock Companies\x0d\ 1) Return on Common Equity = (Net Income - Preferred Stock Dividends)/Average Common Equity\x0d\ Measuring the Profitability of Common Shares\x0d\ 2) The Amount of Earnings Per Share of Common Shares = (Net Income - Preferred Stock Dividends)/ Number of Common Shares Number of common shares\x0d\ Reflects the amount of earnings earned per common share\x0d\ 3) Stock Price to Earnings Ratio = Market Price per Common Share / Amount of Earnings per Common Share\x0d\ Reflects the multiple of the Market Price per Common Share to Earnings per Common Share, which is a measure of the reasonableness of the Market Price\x0d\ 4) Dividends per Common Share = Total Common Dividends distributed / Number of common shares\x0d\ Reflects the number of earnings per common share\x0d\ 5) Dividends = Total Common Dividends distributed / Number of common shares\x0d\ Reflects the number of profits earned per common share\x0d\ x0d\ 5) Dividend Distribution Ratio = Cash Dividends per Share / Amount of Earnings per Share \x0d\ Examining the proportion of dividends distributed by a company to its net earnings per share \x0d\ 6) Yield on Securities = Interest (Dividends) + Difference between the closing price and the opening price of the nominal value of the security / Opening price of the security (Yield on securities held for the duration of the holding period)\x0d\ Reflecting the return that an investor would receive from the profitability of the investment in a security \x0d\ 7) Dividend vs. Stock Price Interest Rate = Dividends per Share / Market Price per Share\x0d\ Reflects the profitability of the current price per share\x0d\ 8) Shareholders' Equity Ratio = Total Shareholders' (Owners') Equity / Total Assets\x0d\ Reflects the proportion of Owners' Equity in Total Assets, and measures the degree of protection of Owners' Equity \x0d\ 9) Earnings and Interest Coverage Multiples (Interest Earnings Multiples) = Operating Profit / Interest Expense \x0d\ Reflects the extent to which profits protect interest payable\x0d\ 10) Earnings to Preferred Shares = Net Earnings + Interest Expense + Income Tax \x0d\ Used as Preferred Shares \x0d\ 11) Cash Flows per Share = (Net Earnings + Depreciation) / No. of Ordinary Shares Outstanding \x0d\ Reflects the cash flows provided by each ordinary share of equity \x0d\ 12) Dividend Payout Ratio = Ordinary Shares Dividend per share / Amount of profit per common share\x0d\ Measurement of the extent of dividend payment per common share\x0d\ 13) Book value per share of common equity = Equity in common equity / Number of common shares issued and outstanding\x0d\ Measurement of shareholders' equity of a business in the event of a merger or bankruptcy