What Is Net Interest Cost?
Net cost and expense margin refers to the ratio of the company's net profit to the total cost and expense. It reflects the relationship between the expenses incurred during the production and operation of the enterprise and the benefits obtained.
Cost expense net interest rate
Right!
- Chinese name
- Cost expense net interest rate
- Definition
- Ratio of corporate net profit to total cost
- Reflection
- Relationship between costs and benefits
- Relationship
- The higher the ratio, the lower the price and the stronger the profitability
- Net cost and expense margin refers to the ratio of the company's net profit to the total cost and expense. It reflects the relationship between the expenses incurred during the production and operation of the enterprise and the benefits obtained.
- Calculation formula of cost net interest rate
- Net cost of interest rate = (net profit ÷ total cost of expenses) × 100%
- The higher this ratio, the smaller the price paid by the enterprise for gains and the stronger its profitability. Therefore, this ratio can be used to evaluate not only the level of profitability of an enterprise, but also its ability to control costs and management levels.