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Net Income Operation Index

2010/11/23 13:51:00 37

Net Income Operation Index Accounting Teller

Net income operation index refers to the ratio of net operating profit to total net income.

By comparing the historical indicators of the index and the industry average indicators, we can examine the quality of a company's earnings.

If the profits of a company are increasing, the proportion of operating profit will decrease year by year.

Management

The proportion of profit increased year by year.

trend

In fact, this is a sign that the quality of net income is getting worse and worse.

Similar to the net income operation index, there is also a proportion of operating profit index, which reflects the proportion of operating profit to total profit.


If the operating index is less than 1, it means that some of the proceeds have not yet been collected.

Stop

In real object or creditor's rights, the risk of physical assets or creditor's assets is greater than cash, because whether the accounts receivable is fully realized is uncertain, and the risk of devaluation is also in stock.

When making use of the report data, the net proceeds should be used in the proceeds of operating activities. The non cash payment includes the provision for impairment of assets, depreciation of fixed assets, amortization of intangible assets, and amortization of long term amortized expenses.

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