gross profit rate

First of all, the concept of gross profit margin

Gross profit margin refers to the percentage of gross profit and sales income (or operating income), in which gross profit is the difference between income and operating cost corresponding to income, which is expressed by the formula:

Gross profit margin = gross profit/operating income × 100%

= (operating income-operating cost)/operating income × 100%

There are many ways to classify gross profit margin. According to commodity categories, there are gross profit margins of individual commodities, bulk commodities and comprehensive commodities. According to the industry, there are gross profit margin of product sales of industrial enterprises, gross profit margin of commodity sales of commercial enterprises, gross profit margin of Jian 'an construction enterprises, gross profit margin of transportation, gross profit margin of tourism and catering services, gross profit margin of regional sales and gross profit margin of sub-projects.

Gross profit and income in gross profit margin calculation usually refer to gross profit and income divided in a certain way in a certain period, corresponding to a certain division and a certain period. When calculating gross profit margin, the calculation caliber of income and cost is the same as that in accounting. For industrial and commercial enterprises, income refers to income excluding VAT output tax, while for Jian 'an construction enterprises, income includes tax. It is particularly important to note that the cost of commercial general taxpayer enterprises is calculated and determined according to the unit price excluding input tax.

For industrial and commercial enterprises, gross profit depends on two factors, one is the quantity factor, that is, the quantity of sales, and the other is the quality factor, that is, the size of unit gross profit, which is expressed by the formula:

Gross profit = ∑ [sales quantity × gross profit per unit]

= ∑ [Sales quantity × (unit selling price-unit cost price)]

= ∑ [classified sales revenue × corresponding gross profit margin]

= Total sales revenue × average gross profit margin

Second, the determinants of gross profit margin

Gross profit margin usually depends on the following factors:

First, the competition in the product market is fierce, and the so-called thing is rare. If there is no such product in the market, or there are few such products, or the product has advantages in quality and functional value compared with similar products in the market, then the price of the product naturally adopts a high-priced strategy. On the other hand, if the market is saturated by operating road products or sunset industries, it can only be achieved by following the sales price of the crowd and realizing the average sales gross profit.

Second, whether the marketing purpose of an enterprise is to expand market share or for other reasons. If it is to expand the market share, it is possible to open the market at a lower price first, and then readjust the pricing strategy according to the degree of market recognition after the market is stable. If it is to recover the investment as soon as possible, the enterprise may enter the market at a higher price, and then gradually penetrate. The market usually returns mature products with high price, small quantity and large price. How to balance price and sales?

Third, the R&D cost invested by enterprises in developing products. A feature of modern economy is that products are updated quickly. If new products with emerging functions can be developed faster and better, and the products have advantages in function, use value and price, who can occupy the highest point in the market? Enterprises have a large amount of R&D investment, usually they have more inventions and get more benefits from patent protection. Emerging products have great advantages in cost and efficacy, and their gross profit is also great.

Fourth, the brand effect of enterprises. If the enterprise is well-known, such as its products have well-known trademarks or local well-known brand trademarks, and the product quality is recognized by the market, then the gross profit of such products will usually be higher. On the contrary, even if the quality of brand-name goods is very good, the gross profit margin of their products is usually not as high as that of products with high brand value because of their lack of popularity. Of course, we can't generalize. Some well-known brands have medium-level products. Mainly rely on higher sales to earn profits, while some brand-name goods mainly rely on special counters and manpower expansion because they don't spend on advertising. Because the advertising expenses in their prices are not large, their gross profit margin is high.

Fifth, the fixed cost of enterprise input mainly refers to the input of fixed assets, such as machinery and equipment, factory buildings and factory rents that constitute fixed manufacturing costs. From a certain perspective, it also reflects the entry threshold of enterprises. In order to recover this huge investment cost, enterprises will also increase the gross profit of products. On the other hand, if enterprises invest little machinery and equipment, or adopt OEM assembly and processing, or entrust processing, part of their sales profits will be given to third-party manufacturers.

Sixth, the cost of technology invested by enterprises, such as producing patented products with independent intellectual property rights, especially invention patents and technology patents, has advantages over similar products in terms of product quality and product function, cost advantage, competitive exclusiveness and natural price increase ability, and the gross profit of products is usually higher at this time;

Seventh, the technical complexity of products, the technical requirements of employing people, the size of labor costs, the complex production process and high technical content, the higher the level of technicians used, the higher the gross profit of their products will naturally be. On the contrary, for highway products with simple technology and low technical content, it is certainly impossible to have much gross profit.

Eight is the turnover rate of accounts receivable, because accounts receivable will occupy the cost of capital, and the boss usually includes this cost of capital in the sales price. That is to say, if it is on sale, the transaction price is much lower, but if it is on credit, the transaction price is higher than on sale, which means greater gross profit, while the low sales price means smaller gross profit.

Nine is in which stage of the enterprise product life cycle. Generally speaking, the gross profit of a new product with brand-new functions is relatively high in the early stage of putting it on the market. However, with the passage of time, with the expansion of the market and the participation of competitors, more and more people are doing it, and enterprises will inevitably reduce prices and promote sales. At the same time, with the rising prices of raw materials and labor, their gross sales will gradually decline, which is more obvious in the health care industry or high-tech industry.

The tenth is whether the production of the main parts of the product is solved by the enterprise itself or outsourced. Generally speaking, the enterprises that produce the main parts themselves have a high Mao Lijiao, and the profits of enterprises that outsource the production of the main parts are divided into a part to the third-party manufacturers. At this time, the gross profit of the enterprise is relatively low.

The above analysis of gross profit margin is only general, but there are exceptions.

For the distribution of gross profit rate, the gross profit rate of high-tech industries is usually higher than that of ordinary industries, and that of emerging industries is higher than that of traditional industries and sunset industries. Compared with similar products, the gross profit margin of the newly developed products is higher than that of the original old products.

Third, the relationship between gross profit margin and authenticity of accounts.

Business owners are rational economic men and cannot always do business at a loss. Gross profit is the basis of business profit. If an enterprise wants to make a profit, it must first get enough gross profit. Other things being equal, a large gross profit margin and a high gross profit margin mean that the total profit will also increase, which is the tax basis for collecting enterprise income tax. The amount of corporate income tax and shareholder bonus tax paid by enterprises is positively related to the profits of enterprises. According to the relevant principles of theoretical tax burden of value-added tax, it is determined that paying more or less value-added tax is positively related to the gross profit margin of enterprises (see the entry of "theoretical tax burden of value-added tax"). In order to avoid paying value-added tax or enterprise income tax, enterprises usually make false accounts outside the enterprise, and may reduce the total gross profit and gross profit rate reflected in the enterprise's books through inflated costs or inflated sales prices, thus reducing the tax base of value-added tax or enterprise income tax, so as to achieve the purpose of evading value-added tax, enterprise income tax or shareholder bonus tax. For export enterprises,

In the process of audit and tax audit, if it is found that the gross profit margin of an enterprise is too low, or too low compared with similar products in the same industry, the gross profit is just or not enough to maintain its period expenses, and the books reflect meager profits or losses for a long time, the authenticity of its costs and income is also worth cherishing. Low gross profit margin is usually the manifestation of inflated costs and hidden income.

IV. Example of Gross Profit Calculation

A. It is known that the purchase price of a commodity is 13.5 yuan excluding tax, and the price excluding tax is 15 yuan. What is the gross profit margin of this commodity? (20 points)

1. Gross profit margin = (excluding tax price-excluding tax purchase price)/excluding tax price × 100%.

2. Gross profit rate = (15-13.5)/15 *100% =10%.

B. It is known that the purchase price of a commodity does not include tax in 800 yuan, but tax in 990 yuan, and the VAT rate is 10%. What is the gross profit margin of this commodity? (20 points)

1. Price excluding tax = price including tax /( 1+ VAT) = 990/( 1+ 10%) = 900 yuan.

2. Gross profit margin = (excluding tax price-excluding tax purchase price)/excluding tax price × 100%

=(900-800)/900= 1 1%

C. It is known that the purchase price of a commodity in 30 yuan is tax-free, the manufacturer's discount is 5%, the value-added tax rate is 5%, and the gross profit rate is set at 10%. What is the price of this commodity including tax? (20 points)

1. After deducting the discount, the purchase price excluding tax = 30-30× 5% = 28.5 yuan.

2. Sales price including tax = purchase price excluding tax ×( 1+ VAT rate) /( 1- gross profit margin)

= 28.5× (1+5%)/(1-10%) = 33.25 yuan.

D. It is known that the tax-included purchase price of a commodity is 100 yuan, the manufacturer's discount is 5%, the transportation cost is 2 yuan/piece, the VAT rate is 5%, and the tax-included price is1/0 yuan. What is the gross profit margin of this commodity? (20 points)

1. Purchase price excluding tax = Purchase price including tax /( 1+ VAT) = 100/( 1+5%) = 95 yuan.

2. After deducting the discount and adding the transportation fee, the purchase price excluding tax = 95-95× 5%+2 = 92 yuan.

3. Price excluding tax = price including tax /( 1+ VAT) =110/(1+5%) =105 Yuan.

4. Gross profit margin = (excluding tax price-excluding tax purchase price)/excluding tax price.

=( 105-92)/ 105= 12.3%