Wu ROE Financial Penetration System — National Software Copyright Registered

Wu ROE Financial Penetration System — National Software Copyright Registered What Is the System? The Wu ROE Financial Penetration System has obtained national software copyright registration. The core operation is extremely simple: an enterprise uploads its trial balance, and the system automatically converts all accounts into revenue ratios, penetrating layer by layer down to the most granular accounts, precisely locating the root cause of problems. The essence can be captured in one sentence: divide every account by operating revenue, transforming them into a unified proportional structure. What is being compared is "whose proportion is high, whose proportion is low" — it does not rely on any preset standards. Core Formula Derivation Step One: Deconstructing ROE Return on Equity (ROE) is the most comprehensive indicator for measuring an enterprise's profitability. Traditional DuPont analysis deconstructs it into three factors, but the denominators of the three factors are not unified, making downward penetration impossible. My method begins with unifying the denominator. ROE = Net Profit Margin × Net Asset Turnover Net Profit Margin = Net Profit Attributable to Parent ÷ Operating Revenue (already a proportion, denominator is revenue) Net Asset Turnover = Operating Revenue ÷ Average Net Assets Step Two: Deconstructing Net Asset Turnover into a "Proportional" Structure Net Asset Turnover = Operating Revenue ÷ Average Net Assets Divide both numerator and denominator by Operating Revenue: Net Asset Turnover = 1 ÷ (Average Net Assets ÷ Operating Revenue) Average Net Assets = Average Total Assets - Average Liabilities Therefore: Average Net Assets ÷ Operating Revenue = Average Total Assets ÷ Operating Revenue - Average Liabilities ÷ Operating Revenue Here is the core: Average Total Assets ÷ Operating Revenue can be broken down into each category of asset item divided by Operating Revenue: Average Total Assets ÷ Operating Revenue = Cash/Revenue + Accounts Receivable/Revenue + Inventory/Revenue + Fixed Assets/Revenue + …… (all asset accounts) Average Liabilities ÷ Operating Revenue can similarly be broken down into each category of liability item divided by Operating Revenue: Average Liabilities ÷ Operating Revenue = Short-Term Borrowings/Revenue + Accounts Payable/Revenue + Long-Term Borrowings/Revenue + …… (all liability accounts) Thus: Average Net Assets ÷ Operating Revenue = (Sum of all Asset Account Ratios) - (Sum of all Liability Account Ratios) The higher the asset ratio, the larger the Net Assets to Revenue ratio, the lower the Net Asset Turnover, and the lower the ROE. Assets are expanding, but revenue is not keeping pace — that is the problem. The higher the liability ratio, the smaller the Net Assets to Revenue ratio, the higher the Net Asset Turnover, and the higher the ROE. Profit is being amplified by leverage, and risk is simultaneously being amplified. Step Three: Unlimited Multi-Level Penetration Asset accounts can continue to be broken down further: · Fixed Assets/Revenue → Buildings/Revenue + Machinery & Equipment/Revenue + Transportation Vehicles/Revenue · Accounts Receivable/Revenue → Customer A/Revenue + Customer B/Revenue + Customer C/Revenue · Inventory/Revenue → Raw Materials/Revenue + Work-in-Progress/Revenue + Finished Goods/Revenue From ROE to the most granular accounts, visible layer by layer, with no end. What Has This Logic Validated? In 2022, I used this system to penetrate Vanke's annual report data for three consecutive years from 2019 to 2021. Within the boundaries of publicly available data, I progressively located the problems down to specific regions and specific accounts — costs and expenses were locked to the Shanghai region, and the asset structure was locked to "Properties Under Development." On April 29, 2022, I publicly published my judgment. Subsequently, Vanke's stock price fell from 33 yuan to 3 yuan. Whether this is post-hoc explanation or ex-ante judgment — the timeline is very clear. Why Is This System Valuable? 1. No Preset Standards It does not rely on industry averages or empirical judgment. The system only presents the "structure" itself — which item's proportion is high, which is low, whether the trend is rising or falling. Judgment is made by people; the system is only responsible for presenting the facts. 2. Full Account Penetration From ROE to the most granular accounts, all pathways are open, with no blind spots. 3. Self-Consistency Verification The penetrated ROE must equal the direct ROE. If they are not equal, it indicates a logical error in the penetration path — the system automatically issues an alert. Next Steps The system has obtained national software copyright registration. Once officially launched, it will be simultaneously opened for cooperative use by academic institutions. Stay tuned. Personal Website: aurum.zeabur.app Wu ROE Financial Penetration System Portal: wushiroe.zeabur.app