Profit: various income-total expenditure (including sales cost, various expenses, non-operating expenses, etc.). )
Gross profit is: sales revenue-sales cost.
Profit rate = profit/income * 100% (percentage of profit to income)
Gross profit margin = gross profit/sales revenue * 100% (gross profit as a percentage of sales revenue)
What's the difference between sales profit rate and gross profit rate?
Definition of gross profit: the balance of commodity sales income of commercial enterprises MINUS the original purchase price. The symmetry of net profit is also called the difference between the purchase and sale of goods.
Definition of profit: refers to the balance of income from selling products after deducting costs, prices and taxes.
Gross profit rate formula = gross profit/operating income × 100%= (operating income-operating cost)/operating income × 100%.
Profit rate formula = profit/cost × 100%
It is also clear that: 1, cost profit rate = profit ÷ cost × 100% 2, and sales profit rate = profit ÷ sales × 100%.
Its calculation formula is: sales profit rate = total profit/operating income × 100%.
Sales gross profit margin and sales profit margin are two different indicators, because the latter has eliminated the period expenses, while the former still includes the period expenses (such as management expenses and financial expenses).
As can be seen from their formula:
Sales profit rate = total profit/operating income × 100%
Gross sales margin = (operating income-operating cost)/operating income × 100%
And total profit = operating income-operating cost-expenses. So it can be seen that the gross profit margin of sales is generally greater than the profit margin of sales.
Mutual influencing factors of sales profit rate:
The profit rate of sales plays a great role in the profit rate of equity. On the contrary, the profit rate of equity is low. The factors that affect the profit rate of sales are sales volume and sales cost. If the sales volume is high and the sales cost is low, the sales profit rate will be high. If the sales volume is low and the sales cost is high, the sales profit rate will be low.
Types and forms of sales profit rate
Sales profit rate:
The ratio of total sales profit to total sales revenue in a certain period. It represents the profit obtained by unit sales revenue and reflects the relationship between sales revenue and profit.
Cost profit rate:
The ratio of total sales profit to total sales cost in a certain period. It represents the profit obtained by unit sales cost and reflects the relationship between cost and profit.
Profit rate of output value:
The ratio of total sales profit to total output value in a certain period indicates the profit obtained by unit output value and reflects the relationship between output value and profit.
Profit rate of funds:
The ratio of total sales profits to average occupied funds in a certain period indicates the sales profits obtained by unit funds and reflects the utilization effect of enterprise funds.
Net profit margin:
The ratio of net profit (after-tax profit) to net sales in a certain period. It shows the ability of unit sales revenue to obtain after-tax profit, and reflects the relationship between sales revenue and net profit.