Business profit margin

Calculation method

Calculation formula

The calculation formula is:

Business Profit Rate = Business Profit / All Business Revenue × 100% < / p>

formula meaning

Among them, business profits take self-interest form, all business revenues include main business income and other business revenue (business income)

business profit margin High, the more business profits provided by enterprise product sales, the stronger the profitability of the company; it is, the lower this ratio, the weaker the profitability of the company.

Basic knowledge

influencing factors

1. Sales quantity;

Business profit margin

2. Unit product average price;

< P> 3. Unit product manufacturing cost;

4. The ability to control management costs;

5. Control marketing costs.

Operating profit

Operating profits = business income (Main business income + other business income) - Business costs (Main business cost + Other business costs) - Business tax and additional - Management fee - sales fee - financial expenses - asset impairment loss + fair value change revenue (loss is negative) + Investment income (loss is negative)

operating profit rate Calculation formula : Operating profit / Operating income

Flow ratio Calculation formula: Flow asset / flow liability

quick ratio calculation Formula: (Flow Assets - Inventory) / Flow Liabilities

Capital Profit Rate Calculation Formula: Operating Profit / Capital

Flow Ratio Measure Company Flow Assets The short-term debt can previously become cash for the ability to repay

.

The speed ratio. Measuring the capacity of the company's current assets can be used immediately to repay the flow of flow.

inventory turnover rate measures the company's sales capabilities and whether inventory is over.

Calculation formula is

inventory turnover = pin cost / average stock * 100%

average inventory = (initial stock + final stock) ÷ 2 < / p>

Of course, it is of course reflecting profitability, capital profit margin reflects capital profitability, is the capital yield

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