Profitability refers to the ability of an enterprise to obtain profits, also known as the capital or capital appreciation ability of an enterprise, which is usually manifested as the amount and level of income of an enterprise in a certain period of time. 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.
Remaining cash guarantee multiple:
The guarantee multiple of surplus cash 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 surplus. Its calculation formula is surplus cash guarantee multiple = net operating cash flow/net profit.
The functions of commercial banks:
1. Adjusting the economy means that commercial banks adjust the shortage of funds in all aspects of society through their credit intermediary activities, and at the same time realize the adjustment of economic structure, consumption proportion investment and industrial structure under the guidance of the central bank's monetary policy and other national macro policies. In addition, commercial banks can adjust their balance of payments through their financing activities in the international market.
2. Because of its extensive functions, commercial banks have a significant impact on the whole social and economic activities and occupy a special and important position in the whole financial system and even the national economy. With the development of market economy and the integration of global economy, commercial banks have highlighted the development trend of functional diversification in 20 12.