(1) liquidity ratio

1. Cash ratio = (cash+cash equivalent)/current assets

This index aims to measure the quality of current assets of enterprises.

Ratio of cash to current liabilities = (cash+cash equivalent)/current liabilities.

This index is stricter than current ratio and quick ratio.

(b) Solvency ratio

1. Repayment rate of principal and interest of debt due = net cash flow generated from operating activities/(principal of debt due in this period+cash principal and interest expenditure)

This index aims to measure the process that the cash generated from the business activities of an enterprise can pay the principal and related interest of the current debt due. If the ratio is less than 1, it means that the cash generated by the business activities of the enterprise is not enough to pay the principal and interest of the debt due in the current period. If it is greater than 1, it means sufficient payment.

Cash flow ratio = net cash flow from operating activities/current liabilities.

This indicator aims to reflect the ratio of net cash flow generated by current operating activities to current liabilities.

3. Cash interest guarantee multiple = (net cash flow from operating activities+cash interest expense+income tax cash)/cash interest expense.

This indicator is based on the change of interest leverage ratio in traditional financial statement ratio analysis, which can reflect the liquidity of enterprises and their ability to pay agreed interest.

(3) profitability

The ratio of net profit to net cash flow from operating activities = net cash flow from operating activities/net profit.

This index aims to analyze the change of the difference between the net profit of an enterprise and the net cash flow generated by operating activities, so as to reflect the real profitability of the enterprise.

(D) Financial management ratio

1. Cash flow ratio per common stock in circulation = (net cash flow from operating activities-preferred stock dividend)/weighted average of common stock in circulation.

This indicator is designed to reflect the cash flow of common shares in circulation.

4. Cash flow ratio for paying cash dividends = net cash flow generated from operating activities/cash dividends.

This indicator reflects the cash flow of the business activities of the enterprise in the current year and the ratio of paying cash dividends in the current year on the date of cash dividend announcement.

(5) Adequacy ratio

Cash flow adequacy ratio = net cash flow from operating activities/(debt repayment+investment+dividend)

This indicator measures whether an enterprise can generate enough cash to repay debts, make investments and pay dividends. If the ratio of enterprises is greater than 1 for several years in a row, it shows that enterprises have great ability to meet their cash needs; If it is less than 1, you need to raise funds or dispose of assets to make up the cash balance. In order to avoid duplication and unstable factors, the total number of years of five years is generally used as the calculation unit.

(6) Efficiency ratio

Target rate of asset cash flow = net cash flow from operating activities/total assets

This indicator reflects the cash flow that an enterprise can obtain per unit of assets.