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Definition of Key Financial Indicators (For Companies Listed in China)

1. ROE

Return on Equity (ROE) measures how effective the management is using a company's assets to create profits. The formula is:

ROE = Net Income Attributable to the Parent Company / Shareholders' Equity Attributable to the Parent Company * 100%

2. ROA

Return on Assets (ROA) is a key profitability ratio that measures the amount of profit made by a company per dollar of its assets. The formula is:

ROA =  Net Income Attributable to the Parent Company / Average Total Assets * 100%


Book Value Per Share (BVPS) indicates the book value (or accounting value) of each share of stock. The formula is: 

BVPS = Total Shareholders' Equity / Shares Outstanding


Cash Flow Per Share(CFPS) functions as a measure of a firm's financial strength and is calculated as the cash flow from operating activities of a company by the total number of shares outstanding. The formula is:

CFPS =Operation Cash Flow / Shares Outstanding

5. Gross Margin

Gross Margin measures how profitable a company is during a given period. The formula is: Gross Margin = Gross Profit / Revenue * 100%

6. EPS

Earnings Per Share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. Here, it refers to the diluted EPS reported in the financial reports.


Capital Reserve Per Share (CRPS) measures the amount which a company raises in excess of par value on a per-share basis. Capital Reserve represents the accumulated capital surplus of a company (not revenue surplus), created out of capital profit, such as the upward revaluation of its assets to reflect their current market value after appreciation. The formula is: 

CRPS =Capital Reserve / Shares Outstanding


Undistributed Profits Per Share (UDPPS) refers to the earnings of a corporation that have not been paid out to investors in the form of dividends on a per-share basis. The formula is: 

UDPPS = Undistributed Profits / Shares Outstanding

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