I. Gross profit margin and net interest rate
The return on net assets is greater than 15%, the gross profit margin is greater than 40%, and the net interest rate is greater than 5%. The return on net assets and gross profit margin reflect a company's profitability, while the net interest rate reflects the company's growth ability and competitiveness. Today, let's talk about gross profit margin and net interest rate. Gross margin is the ratio of gross profit to sales income (or operating income). In layman's terms, it is how much you can earn. The net interest rate is the ratio of net profit to operating income. Compared with the gross profit margin, the net interest rate also takes into account the sales expenses, management expenses and financial expenses, which can more comprehensively reflect a company's growth ability and competitiveness.
Second, how to calculate the gross profit?
The concept of gross profit margin is based on the concept of gross profit, that is, the symmetry of "net profit", also known as "the difference between the purchase price and the selling price of goods", that is, the difference between the sales income and the purchase price of goods. Net profit/net profit in a specific period = gross profit and expenses related to this period; Gross profit calculation formula = (sales revenue-sales cost)/sales revenue * 100%. In China, the difference between the purchase and sale of industrial products refers to the difference between the ex-factory price and the wholesale price of the same product, that is, the gross profit of wholesalers; The difference between wholesale price and retail price is called the difference between wholesale price and retail price, which is the retailer's gross profit. The price difference of agricultural and sideline products refers to the price difference between the purchase price and the wholesale price or retail price of the same agricultural and sideline products. If the gross profit is not enough to compensate the distribution cost and taxes, the seller will lose.
Gross profit margin is divided into comprehensive gross profit margin, classified gross profit margin and single commodity gross profit margin, which respectively reflect the price difference level of all, main categories and some commodities operated by enterprises, and are the basis for accounting whether the operating results and price setting of enterprises are reasonable. Gross profit is the difference between tax-free income and tax-free cost realized by goods. Because value-added tax and price tax are separated, it is emphasized that tax is not included.