What Is a Gross Profit Margin?

Gross profit margin is the percentage of gross profit to sales revenue, where gross profit is the difference between sales revenue and cost of sales.

Gross profit margin

Right!

Gross profit margin is the percentage of gross profit to sales revenue, where gross profit is the difference between sales revenue and cost of sales.

definition

1. Macroeconomics and fuzzy mathematics will be used.

2. Take a commodity circulation company as an example: Main business profit = Main business income-Main business cost (price of goods minus purchase price). This is also called gross profit. If the price of a company's goods is 1.5 million, and the purchase price of the goods sold is 1.25 million, the gross profit is 250,000, also called the main business profit. The gross profit margin was 16.7% (25/150 * 100%).

3. Gross profit + other business profits-period expenses (operating expenses, management expenses, financial expenses) + non-operating income-non-operating expenses = total profit.

4. Total profit-Income tax payable = net profit, which is also profit available for distribution by the enterprise.

5. The debt ratio is the ratio of a company's total debt to total assets. If the company's asset-liability ratio is around 60%, it indicates that the company's operating conditions are good, it has a certain ability to resist risks and a strong solvency, and of course it must be analyzed in conjunction with other economic indicators.

6. OEM is the abbreviation of Original Equipment Manufacturing in English, which means: product development and manufacturing according to the contract entrusted by the original unit (brand unit), using the original unit's trademark, and the cooperative operation production mode sold or operated by the original unit. OEM can be simply referred to as "foundry production" or OEM production. This business model has been operating internationally for many years and is effective.