What is a profit margin and what is a profit margin?

Revenue margin refers to the ratio of the total profit realized by the enterprise to the sales revenue of the same period.

The income profit rate index can not only assess the completion of the profit plan of the enterprise, but also compare the operation and management level between enterprises and in different periods, so as to improve economic efficiency.

The profit margin on revenue reflects the relative index of the profit level of an enterprise in a certain period. Calculation formula: Profit margin on revenue = total profit Sales revenue.

The rate of profit is the ratio of surplus value to total capital advanced, and the rate of profit is the transformed form of the rate of surplus value, which is another ratio calculated by different methods for the same amount of surplus value.

It is calculated as follows:

Gross profit margin on sales = [(sales revenue - cost of sales) sales revenue] 100% net profit margin on sales = (net profit sales revenue) 100%.

Operating Profit Margin (Operating Profit Sales Revenue) 100% Net Asset Profit Margin = (Net Profit Average Total Assets) 100% (Net Profit Sales Revenue) (Sales Revenue Average Total Assets) = Net Sales Profit Margin Asset Turnover.

Sale**-Purchase**】 Purchase***100%.

Numerator of Marginal Profit Margin = Net Profit + After-tax Interest Expense = After-tax Operating Profit and Net Profit Margin Numerator = Net Profit.

The former only takes into account the profit and loss of operating activities, while the latter takes into account the profit and loss of operating activities and financial activities.

To put it simply: profit is a few percent of the cost.

Formula: Profit Cost x 100% = Profit Margin.

The marginal rate of profit refers to the amount of profit that can be obtained by each yuan invested at a certain time in the process of input and output, when the marginal rate of profit is high, on the one hand, it means that the sensitivity of your product is not high, that is, it will not lead to a decrease in sales volume due to slight changes, on the other hand, it can also show that your market share is large enough, even if the income after the increase can also make up for and exceed the loss suffered by reducing the sales volume, so, Research the marginal profit margin of each product or merchant to determine your position in the market and your product pricing strategy.

(1) One of the simplest ways to calculate economic profits.

Economic Profit Operating Profit Before Interest and Taxes All Capital Expenses.

2) Another way to calculate economic profits is to multiply the difference between the rate of return on invested capital and the cost of capital by the invested capital.

Economic Profit Opening Invested Capital (Initial Return on Invested Capital Weighted Average Cost of Capital).

Profit Margin Formula Profit Cost 100% = Profit Margin.

Profit margins are often expressed as percentages. The concept of the rate of profit is the ratio of surplus value to the total capital advanced, and the rate of profit is the transformed form of the rate of surplus value, which is another ratio calculated by different methods for the same amount of surplus value.

If p is the rate of profit and c is the total capital prepaid (c+v), then the rate of profit p = m c = m (c + v).

The profit margin reflects the relative index of the profit level of an enterprise in a certain period. The profit margin index can not only assess the completion of the profit plan of the enterprise, but also compare the operation and management level of various enterprises and different periods, so as to improve economic efficiency.

Cost Profit Margin = Profit Cost 100%, Sales Profit Margin = Profit Sales 100% [This paragraph] The main manifestations of profit margin The main forms of corporate profit margin are:

Profit margin on sales. The ratio of total profit from sales to total sales revenue for a given period. It indicates the profit obtained per unit of sales revenue and reflects the relationship between sales revenue and profit.

Cost-to-profit margin. The ratio of total profit from sales to total cost of sales for a given period. It indicates the profit obtained per unit cost of sales, reflecting the relationship between cost and profit.

Profit margin on production value. The ratio of total sales profit to total output value in a certain period, which indicates the profit obtained per unit of output value, reflects the relationship between output value and profit.

Margin of return on funds. The ratio of total profit from sales to the average amount of capital occupied in a given period. It indicates the sales profit obtained by the unit of funds, reflecting the utilization effect of the enterprise's funds.

Net profit margin. The ratio of net profit (profit after tax) to net sales for a given period. It indicates the ability of a unit of sales revenue to obtain after-tax profits, reflecting the relationship between sales revenue and net profit.

The main factors affecting the rate of profit The rate of profit is the conversion of surplus value into profit, and the rate of surplus value is converted into the rate of profit. The rate of profit is the ratio of surplus value to the total prepaid capital. The rate of profit and the rate of surplus value are different ratios derived from the same quantity of surplus value compared to different quantities of capital.

The rate of profit indicates the degree of multiplication of all the advance capital, and is always less than the rate of surplus value in quantity, thus masking the degree of capitalist exploitation. Profit margins are constantly changing, and the main factors that determine and affect profit margins are:

First, the rate of surplus value. All else being equal, a higher rate of surplus value leads to a higher rate of profit; Conversely, the rate of surplus value is low, and the rate of profit is low. Thus, any method that increases the rate of surplus value will correspondingly increase the rate of profit.

Second, the organic composition of capital. The organic composition of capital is high, and the profit rate is low; The organic composition of capital is low and the rate of profit is high.

Third, the speed of capital turnover. The acceleration of capital turnover increases the annual surplus value rate, which in turn also increases the annual profit margin. The annual rate of return of capital changes in the same direction as the rate of capital turnover.

Fourth, constant capital savings. In the case of a certain rate of surplus value and the amount of surplus value, saving constant capital can reduce the advance capital and thus increase the rate of profit.

Summary. The definition of the rate of profit refers to the ratio of surplus value to the total capital advanced, and is also the transformed form of the rate of surplus value.

What is Profit Margin?

The definition of the rate of profit refers to the ratio of surplus value to the total capital advanced, and is also the transformed form of the rate of surplus value.

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Profitability is our simplified term, which is actually the first profitability. This ratio reflects investors' expectations of the company's future earnings, and the higher the ratio, the more optimistic the investors' expectations for **, and vice versa. The reason for this is that it is precisely because investors have high expectations of the company's future earnings that the stock price will rise, and this ratio will increase accordingly.

Generally speaking, the ratio is higher for companies that are growing fast, and the rate for companies that are growing steadily is correspondingly low.

In addition, this ratio is also an important tool for measuring the value of investments in the world. The lower the ratio, the higher the value of the investment. For example, suppose that the current price per share is 120 yuan, and the average after-tax profit per share is 20 yuan, and the result is 6 times that of the above formula.

In other words, to invest in this kind of **, you must invest 6 yuan in order to make a profit of 1 yuan. Conversely, if the above ratio is 3 times and the after-tax profit per share remains unchanged, the investor only needs to invest 60 yuan. Of course, this kind of analysis can only be used as a reference, and it is not absolutely meaningful, because it also involves the difference between speculation and investment, as well as the development of the company's operation.

This ratio must be calculated by comparing it to the current interest rate standard before it can be determined whether it is a profitable investment. In addition, when using this ratio to measure stock prices, you should consider different ** separately, and always pay attention to how much is a reasonable investment. American** investment experts pointed out:

A few years ago, 10 to 1 was the accepted standard ratio, but recently it has been considered too high to be a sound investment. At present, the US financial community believes that the lower the multiplier, the better.

Pricing Cost-1

Rate of Profit = Surplus Value (Constant Capital + Variable Capital) i.e. P = M (C + V), that is, the rate of profit is the ratio of surplus value to total capital.

In general, it can be understood as: profit rate = total profit total capital x 100%.

Or profit margin = (selling price - cost) cost = (selling price cost) - 1

What profit margin are you asking?

Profit margin is a relative indicator, and due to the uncertainty of the concept of profit, there are many ways to calculate profit margin, 100%.

Profit rate per capita = total profit Average number of employees.