Financial Risk Early-Warning of Neusoft Group Based on Support Vector Machine

Table 2

Variable selection.

Evaluation content	Financial indicator	Formula
Profitability	Return on equity	Net profit/net assets
	Operating margin	Operating profit/net operating income
	Cost expense margin	Total operating profit/cost expense
Operating capacity	Total asset turnover	Sales revenue/average total assets
	Accounts receivable turnover rate	Net credit sales income/average balance of accounts receivable
	Inventory turnover rate	Operating cost/average inventory balance
	Return on assets	EBIT/Average total assets
	Turnover rate of current assets	Net income from main operations/average total current assets
Solvency ability	Quick ratio	Quick assets/current liabilities
	Net cash flow from operating activities/current liabilities	Net cash flow from operating activities/current liabilities
	Asset–liability ratio	Total liabilities/total assets
Growth capacity	Operating income growth rate	Growth in operating income/total operating income in the previous year
	Total asset growth rate	Total asset growth this year/total assets at the beginning of the year
	Capital accumulation rate	Increase in owner’s equity for the year/capital accumulation rate of owner’s equity in early