The six indicators of profitability are as follows:

The six key indicators are "gross profit margin, operating profit margin, operating safety margin, net interest rate, earnings per share (EPS) and return on net assets (ROE)". Weight proportion: Except the net interest rate and earnings per share (EPS) each account for 11%, other indicators account for 21% respectively.

first, the gross profit margin, operating profit and earnings per share (EPS has no specific standard

We need to pay attention to the five-year trend of individual stocks and the horizontal comparison of industries, and the principle is that the higher the better! Among them, the interest rate is a very important reference for the profitability of enterprises, and it should be a relatively stable indicator. If there is a sudden change, there must be a major change. Therefore, when looking at the gross profit margin, we should look at it for five years, not just one year, but also the future trend from the hand interest rate figures. Generally speaking, enterprises should pay attention to the following situations in terms of gross profit margin:

1. The decline of gross profit margin means the decline of product competitiveness, and the sustained profitability will also be affected:

2. The gross profit margin is higher or lower than that of peers, indicating that the rationality needs to be explained in detail and the specific information needs to be further investigated.

3. The change of gross profit margin is inconsistent with the change of industry, so it is necessary to find out the reasons and authenticity:

4. The gross profit margin fluctuates greatly, which has an impact on the sustainable profitability and needs to be judged.

2. Operating expense ratio:

Operating expense ratio connects gross profit rate and operating profit rate, which can judge a company's relative position in the industry according to the following indicators: /p>

1. Operating expense ratio <; 11%, which means that this company has a considerable economic scale in the industry, is a company with special skills, or the top three in the industry.

2. If the operating expense ratio can not only be achieved <; 11%, but also <; 7%, not only has a large scale, but also saves a lot in operating expenses.

3. Operating expense ratio > 21%, may appear in the following industries

own brand, the cost of advertising is very expensive. Companies that have not yet achieved economic scale have high indicators because the denominator (operating income) is small. The market is booming, but it still needs continuous investment. Industries that need constant promotion to have repeat customers, such as supermarkets. Catering industry. The expense ratio of the catering industry is generally above 33%, so the gross profit margin of the catering industry must be above 51% in order to continue to operate.