1. Ratio of net assets to annual outstanding loans: it must be greater than 100% (real estate enterprises can be greater than 80%).

2. Asset-liability ratio: It must be lower than 70%, preferably lower than 55%. Asset-liability ratio is the percentage of total liabilities divided by total assets, which is the proportional relationship between total liabilities and total assets. The asset-liability ratio reflects how much of the total assets are financed by borrowing, and can also measure the extent to which enterprises protect the interests of creditors in the liquidation process.

The calculation formula is: asset-liability ratio = (total liabilities/total assets) * 100%.

Solvency:

3. Current ratio: Generally speaking, the greater this indicator, the stronger the short-term solvency of the enterprise. Usually, this indicator is better at 150%~200%. Current ratio is the ratio of current assets to current liabilities, which is used to measure the ability of enterprises to convert current assets into cash to repay liabilities before short-term debts expire.

4. Quick ratio: Generally speaking, the greater the index, the stronger the short-term solvency of the enterprise. Generally, this indicator is better at around 100%, and SMEs should be above 80%. Quick ratio is the ratio of quick assets to current liabilities. Quick assets include monetary funds, short-term investments, notes receivable, accounts receivable and other accounts receivable. Inventory, prepayments and prepaid expenses in current assets should not be included.

Quick ratio = (current assets-inventory-prepayments-prepaid expenses)/total current liabilities × 100%.

5. Guarantee ratio. Enterprises should minimize the risk of loss. Generally speaking, the ratio is less than 0.5.

Cash flow:

6. The net cash flow generated by the business activities of the enterprise should be positive, and the cash withdrawal rate of its sales income should be above 85~95%.

7. When an enterprise pays for purchased goods in business activities, the cash payment rate of labor services should be above 85~95%.

Operating ability:

8. Growth rate of main business income: Generally speaking, if the annual growth rate of main business income is not less than 8%, it means that the main business of the enterprise is in the growth stage. If the ratio is less than -5%, it means that the product will enter the end of its life. The growth rate of main business income can be used to measure the product life cycle of a company and judge its development stage. Generally speaking, if the growth rate of main business income exceeds 10%, it means that the company's products are in the growth stage and will continue to maintain a good growth momentum, and it has not yet faced the risk of product upgrading, and it belongs to a growth company. If the income growth rate of the main business is between 5%- 10%, it means that the company's products have entered a stable period and are about to enter a recession, so it is necessary to start developing new products. If the ratio is less than 5%, it means that the company's products have entered a recession, it is difficult to maintain market share, and the profit of its main business has begun to decline. If new products are not developed, they will enter decline.

Growth rate of main business income = (main business income in the current period-main business income in the previous period)/main business income in the previous period * 100%

9. Turnover speed of accounts receivable: the average enterprise should be more than six times. Generally speaking, the higher the turnover rate of enterprise accounts receivable, the shorter the average collection period of enterprise accounts receivable, and the faster the speed of fund withdrawal. Accounts receivable turnover rate The company's accounts receivable occupy an important position in current assets. If the company's accounts receivable can be recovered in time, the efficiency of the company's capital use can be greatly improved. Accounts receivable turnover rate is the ratio reflecting the company's accounts receivable turnover rate. It shows the average number of times a company's accounts receivable are converted into cash in a certain period of time. The turnover speed of accounts receivable expressed in time is the turnover days of accounts receivable, which is also called the average payback period or average cash payback period of accounts receivable. It represents a company's right to obtain accounts receivable and the time it takes to recover the money and turn it into cash.

Its calculation formula is:

Accounts receivable turnover rate (times) = main business income ÷ average accounts receivable.

Average collection period =360÷ accounts receivable turnover rate = (average accounts receivable ×360)÷ sales revenue.

Note: Average accounts receivable = (AR at the beginning+AR at the end)/2

10, the turnover rate of deposits and loans: the average small and medium-sized enterprises should be more than five times. The faster the inventory turnover rate, the lower the inventory occupancy level and the stronger the liquidity. Inventory turnover rate is a comprehensive index to measure and evaluate the operating conditions of enterprises in purchasing inventory, putting into production and sales recovery. It is the ratio of the cost of goods sold divided by the average inventory, or the number of inventory turnover times. The inventory turnover rate expressed in time is the number of inventory turnover days. The calculation formula is as follows:

Inventory turnover rate (times) = cost of goods sold/average inventory balance

In which: average inventory balance = (beginning inventory+ending inventory) ÷2

Inventory turnover days =360/ inventory turnover times

The quality of inventory turnover index reflects the level of enterprise inventory management and affects the short-term solvency of enterprises, which is an important content of the whole enterprise management. Generally speaking, the faster the turnover rate of inventory, the lower the occupancy level of inventory, the stronger the liquidity, and the faster the inventory can be converted into cash or accounts receivable. Therefore, improving the inventory turnover rate can improve the liquidity of enterprises.

Operational benefits:

1 1. Operating profit rate: this indicator indicates the profit level of annual operating income and reflects the comprehensive profitability of the enterprise. Generally speaking, the index should be greater than 8%. Of course, the greater the index value, the stronger the comprehensive profitability of the enterprise. Operating profit margin refers to the ratio of operating profit to operating income of an enterprise. It is an index to measure the operating efficiency of an enterprise, reflecting the ability of enterprise managers to obtain profits through operation without considering non-operating costs. The higher the operating profit rate, the more the operating profit provided by the enterprise's 100-yuan commodity sales, and the stronger the profitability of the enterprise; Conversely, the lower the ratio, the weaker the profitability of the enterprise.

Its calculation formula is:

Operating profit margin = operating profit/operating income (commodity sales) × 100%

Operating profit is taken from the income statement.

12. ROE: At present, SMEs should be greater than 5%. Generally speaking, the higher the index value, the higher the return from investment and the higher the income level of shareholders. Return on net assets, also known as return on shareholders' equity, is the percentage of net profit and average shareholders' equity, which is the percentage rate obtained by dividing the company's after-tax profit by its net assets. This index reflects the income level of shareholders' equity and is used to measure the efficiency of the company's use of its own capital. The higher the index value, the higher the return on investment.

These indicators in the report look good, that's all.