The Risk Evaluation of the Enterprise's Capability to Profit

The reward rate of the enterprise total capital, the profit rate of asset, the profit margin of distribution and the profit margin of the cost and expense are the important indexes to evaluate the capability of the enterprise to profit. We could say that the capability of the enterprise to profit is comparatively better and the risk is comparatively smaller if the reward rate of the enterprise's total capital exceeds 4 percent, the profit rate of asset exceeds 8 percent, the profit margin of distribution exceeds 40 percent and the profit margin of the cost and expense exceeds 10 percent. When investors use these indexes, they could reduce the risk that occurs because of the lack of payoff in their investment actions.