For example, the gross profit margins of UFIDA Software from 20 10 to 20 12 are 82.64%, 84.87% and 84.06% respectively, which can undoubtedly be described as very high. However, the net profit margins of UFIDA Software are 1 1.62%, 13.36% and 9. 14%, which are far lower than its gross profit margin. In other words, UFIDA's unusually high gross profit margin did not bring it an unusually high net profit margin.
Gross profit margin is the percentage of gross profit and sales income (or operating income), in which gross profit is the difference between income and operating cost corresponding to income, which is expressed by the formula: gross profit = gross profit/operating income × 100%= (main business income-main business cost)/main business income × 100%.
Net profit rate, other terms can also be called net profit rate, net profit rate of sales, net profit rate of sales, net profit rate of business and profit rate of main business. In fact, they all refer to the same thing, indicating how much a company can earn net 1 yuan. Look at this indicator, you can compare it with the gross profit margin. The closer the two are, the lower the period cost of the enterprise.
Net interest rate = net profit/sales revenue = (sales revenue-sales cost-expenses in each period-taxes)/sales revenue.
What's the difference between gross profit margin and net interest rate?
1. Different in nature.
Gross profit margin is the percentage of gross profit and sales income (or operating income), and net interest rate indicates how much money an enterprise can earn with the income of 1 yuan.
2. Different calculation methods
Gross margin = gross profit/operating income × 100%= (main business income-main business cost)/main business income × 100%, net interest rate = net profit/main business income × 100%= (total profit-income tax expense)/main business income × 650.
3. Different influencing factors
Gross profit margin is obviously affected by quantity and quality, and net profit rate is obviously affected by income tax rate.