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%

3. BVPS

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

4. CFPS

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.

7. CRPS

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

8. UDPPS

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