How to calculate the company's gross profit margin

1, gross profit margin = (sales revenue-sales cost)/sales revenue × 100%= (price excluding tax-purchase price excluding tax)/price excluding tax × 100%.

2. Gross profit margin =( 1- purchase price excluding tax/sale price excluding tax) × 100%

3. Gross profit margin = (sales revenue-cost of sales)/sales revenue × 100%

Extended data:

Gross profit margin depends on the following factors:

1, market competition

2, enterprise marketing

3.R&D cost

4. Brand effect

5. Fixed costs

6. Technical cost

7, technical process

8. Turnover rate

9, life cycle

10, product parts

Calculation methods of various profits:

1, the basic formula of gross profit calculation is:

Gross profit margin = (excluding tax price-excluding tax purchase price) ÷ excluding tax price × 100%

2. Price excluding tax = price including tax ÷( 1+ tax rate)

3. Purchase price excluding tax = purchase price including tax ÷( 1+ tax rate)

4. Operating profit = main business profit+other business profit-operating expenses-management expenses-financial expenses.

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