Supply chain status
factor.formula
Customer Concentration Ratio (CCR) =
Measures the company's dependence on the top five customers. The higher the value, the higher the customer concentration. The company's bargaining power is relatively low and it may face a higher risk of customer churn.
Supplier Concentration Ratio (SCR) =
Measures the company's dependence on the top five suppliers. The higher the value, the higher the supplier concentration. The company's bargaining power is relatively low and it may face higher procurement cost risks.
Capital Occupation Ratio (COR) =
This indicator measures the capital occupation of upstream and downstream companies in the supply chain. It combines accounts payable, advances received, accounts receivable, prepaid accounts and inventory. A positive value means that the company occupies more funds from upstream and downstream companies, and may be in a favorable position in the supply chain; a negative value may mean that the company is occupied by funds from upstream and downstream companies.
Cash Flow to Profit Ratio (CFPR) =
Measures the company's ability to convert net profit into cash, excluding the impact of non-cash expenses (depreciation and amortization) and financial expenses. The higher the value, the higher the company's profit quality and the stronger the net cash flow generated by operating activities.
In each formula, the numerator and denominator should use data from the same reporting period.
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The total sales to the top five customers disclosed in the company's annual report.
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Total annual sales as disclosed in a company's annual report.
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The total purchase amount from the top five suppliers disclosed in the company's annual report.
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Total annual purchases as disclosed in the company's annual report.
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The balance of accounts payable in a company's liabilities.
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The balance of accounts receivable in advance in the company's liabilities.
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The balance of accounts receivable in a company's assets.
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The balance of prepaid accounts in the company's assets.
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The inventory balance in a company's assets.
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Operating income disclosed in the company's annual report.
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Net cash flow from operating activities as disclosed in the company's annual report.
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Net profit disclosed in the company's annual report.
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Depreciation and amortization expenses disclosed in the company's annual report.
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Financial expenses disclosed in the company's annual report.
factor.explanation
Empirical research shows that: customer concentration and supplier concentration are both negative factors, reflecting the market's preference for companies with a higher degree of upstream and downstream dispersion in the supply chain; capital occupation level is a positive factor, indicating that companies that occupy more upstream and downstream funds tend to have more say in the supply chain; operating cash flow cash flow is a positive factor, indicating that the higher the quality of profitability of a company, the more stable its position in the supply chain. The synthetic supply chain bargaining power and operational efficiency comprehensive factor has a strong stock selection ability and can effectively distinguish between companies with an advantageous position and a disadvantaged position in the supply chain.