How to calculate the profit rate of main business

Profit rate of main business refers to the ratio of main business profit to main business net income in a certain period.

It shows how much profit an enterprise can bring from its main business income per unit, reflects the profitability of its main business, and is the main index to evaluate its operating efficiency.

The profit rate of main business is a further supplement to the capital return rate index from the profitability and profit level of the main business of the enterprise, which reflects the contribution of the main business profit of the enterprise to the total profit and its influence on the total profit of the enterprise. This index reflects the most basic profitability of business activities. Without a large enough profit margin of the main business, the final profit of the enterprise cannot be formed. Therefore, combined with the analysis of its main business income and main business cost, it can fully reflect its shortcomings and achievements in cost control, expense management, product marketing and business strategy.