Data:2009-12-12 2:34
Category: Money tips Release Date: 2006-04-28
Growth rate analysis is the analysis of listed companies is an important way. Growth ratio is the financial analysis, ratio analysis, one of the important ratios, which generally reflect the expansion of the company's viability is closely linked with the solvency ratio, in a certain sense, can also be used to measure the capacity of companies to expand their operations. Because security is among profitability, growth foundation. The company is only developing a series of reasonable solvency ratios, in order to move toward a sound financial structure is it possible to expand the company's production and management. Here only from the profit retention and re-investment rate ratios to illustrate the growth rate.
Profit retention rate refers to the company's profit after tax minus the dividends to be found in the difference between gold and the after-tax profit ratio. It shows how much the company's after-tax profits for the issuance of dividends, earnings for the retention and expansion of the number of operations. Higher the rate of profit retention, indicating that more emphasis on the development of the company's staying power will not be affected too much due to dividends the development of enterprises, the profit retention rate is too low, or that company operations are not well, had to draw more profits to make up for losses, or dividends too much potential for development is limited. Its calculation formula is:
Profit retention rate = (after-tax profits - should be sent dividends) / profit after tax × 100%
Re-investment rate is also called the internal growth rate, which indicates that the company use its earnings to reinvest the proceeds in order to support the company's growth capacity. The higher the rate of re-investment, the stronger the company the ability to expand operations, and vice versa weaker. Its calculation formula is:
Reinvestment rate = return on capital × shareholders profit rate = after-tax profit / shareholders equity × (shareholder profits - shareholders payment rate) / shareholder profits