Profit rate is the ratio of surplus value to all prepaid capital, and profit rate is the transformation form of surplus value rate, which is another ratio calculated by different methods for the same surplus value. If P' stands for profit rate and c stands for all prepaid capital (c+v), then profit rate P'= M/C = M/(C+V). Profit rate is a relative index reflecting the profit level of an enterprise in a certain period.

Profit rate index can not only assess the completion of enterprise profit plan, but also compare the management level between enterprises and in different periods to improve economic benefits. Cost profit rate = profit/cost × 100%, and sales profit rate = profit/sales × 100%.

Profit rate of capital = total profit/(average annual balance of original price of fixed assets+average annual balance of fixed liquidity) × 100%.

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Influencing factors of commodity profit rate:

1. Surplus value rate: other things being equal, the higher the surplus value rate, the higher the profit rate; On the contrary, the surplus value rate is low and the profit rate is low. Therefore, any method that can improve the surplus value rate will increase the profit rate accordingly.

2. Organic composition of capital: high organic composition of capital and low profit rate; The organic composition of capital is low and the profit rate is high.

3. Capital turnover rate: The accelerated capital turnover rate has increased the annual surplus value rate, thus increasing the annual profit rate. The annual profit rate of capital changes in the same direction as the capital turnover rate.

4. Saving constant capital: Saving constant capital can reduce prepaid capital and improve profit rate under the condition that the surplus value rate and surplus value amount remain unchanged.

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