How Do I Calculate Company Profit?

The profit calculation method is a method for calculating the net income of an enterprise, and it is also a calculation method for calculating the final financial results reflecting the production and operation activities of the enterprise, as well as evaluating economic comprehensive indicators.

Profit calculation

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The profit calculation method is a method for calculating the net income of an enterprise, and it is also a calculation method for calculating the final financial results reflecting the production and operation activities of the enterprise, as well as evaluating economic comprehensive indicators.
Chinese name
Profit calculation
Field
financial
Attributes
noun
Function
Calculate corporate net income
Calculation method
The calculation steps of the profit calculation method are:
(1) Calculate the unit product price. The calculation methods for the ex-factory price of a unit product are:
Cost plus tax calculation method, its calculation formula is:
Ex-factory price of industrial products = unit product cost + unit product tax + unit product profit
First determine the sales price method, its calculation formula is:
Ex-factory price of industrial products = retail price per unit product + quality or specification difference + batch zero difference
Capital protected price method, its calculation formula is:
The ex-factory price of China's industrial products is calculated at the market price stipulated by the relevant department or approved by the relevant department.
(2) Calculate sales income. Sales income is the monetary income of the goods and services provided after the project is put into operation at the actual sales price. The calculation formula is:
Sales revenue = sales volume x unit product price
(3) Calculate profits. The steps are:
Calculate gross profit.
Gross profit = sales revenue-cost of sales
Calculate sales profit.
Sales profit = gross profit one tax
Calculate net profit.
Net profit-sales profit ± non-operating profit or loss
Calculate the profit to be paid.
Turnover profit = net profit-corporate profit retention
The enterprise profit reserve is distributed to a certain percentage of net profit as employee welfare funds, employee incentive funds, collective funds, production development funds, reserve funds, etc.
(4) Calculate the profit margin. Its calculated indicators are sales profit margin, cost profit margin, capital profit margin, and output value profit margin. The calculation formula is:

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