What Is an Operating Margin?

It is the profit realized by the enterprise in all its sales operations, also known as operating profit and operating profit, and it includes the profit of the main business. Sales profit is always a behavioral goal in commercial economic activities. Without sufficient profits, companies cannot continue to survive. Without sufficient profits, enterprises cannot continue to expand and develop. Many business owners faced fierce competition in the market and faced with the situation of sales of ultra-low profit products. However, products cannot be sold without lowering prices, and enterprises can no longer survive. Prices have fallen, product sales are getting larger and larger, but profits are getting smaller and smaller, and even losing money.

sales profit

Sales profit is the main source of corporate profits. Sales profit is mainly composed of operating income, operating costs,

The formula for calculating sales profit is:

Sales profit =

Except subject

"Cars are easy to sell but hard to make money," many auto dealers lamented in 2005. According to the latest statistics from the National Bureau of Statistics

Car sales profit

In the second half of the year, car production increased by more than half, but vehicle profits fell by 38.4%, leaving only 4% of profits in the sales segment.

According to statistics, in 2005 China produced a total of 2,958,400 cars, an increase of 26.9% over the previous year, of which 308,000 were produced in December, an increase of 60% over the same month last year.

However, at the same time that car production and sales have grown rapidly, vehicle profits have fallen sharply. Vehicle profits have fallen by 38.4% over 2004, and the sales profit margin has dropped sharply from 9.11% in 2003 to 6.85% in 2004 and 4% in 2005. It is lower than the average level of 4.46% of the entire manufacturing industry.