Gross profit margin is the percentage of gross profit and sales income (or operating income), where gross profit is the difference between income and operating cost corresponding to income, which is expressed by the formula: gross profit = gross profit/operating income × 100%.
1. gross profit: refers to how much money can be used for expenses in various periods and make profits after deducting sales costs from sales revenue per yuan.
2. Net profit: This indicator reflects the net profit per yuan of sales revenue. Income level representing sales revenue.
3. The gross profit margin of sales is the initial basis of the net profit margin of sales. Without a large gross profit margin, it is impossible to make a profit.
Extended data:
Basic calculation:
Operating profit = operating income-operating costs-business taxes and surcharges-sales expenses-management expenses-financial expenses-asset impairment loss+fair value change loss (-fair value change loss)+investment income (-investment loss).
Operating income: refers to the total income recognized by various businesses of an enterprise, including main business income and other business income.
Operating costs: refers to all the actual costs incurred by an enterprise in operating its business, including the main business costs and other business costs.
Asset impairment loss: the loss caused by the enterprise's provision for asset impairment.
Gains (or losses) from changes in fair value: gains (or losses) from changes in fair value that should be included in current profits and losses, such as trading financial assets of enterprises.
Investment income (or loss): the income (or loss) obtained by enterprises investing abroad in various ways.
Total profit = operating profit+non-operating income-non-operating expenditure.
Non-operating income: various interests that are not directly related to the daily business activities of an enterprise.
Gross profit is the balance of sales revenue (sales price) minus the original purchase price, specifically, the delivery price minus the purchase price. For example, when eggs are sold, the purchase price is 50 cents 1 and the selling price is 1, so the gross profit of 1 eggs is 50 cents. Gross profit refers to the percentage of gross profit and sales revenue. Take the eggs above as an example. 1 The purchase price of eggs is 50 cents, and the price is 1. Then the gross profit of 1 egg is: 1 (sales revenue) -0.5 (original purchase price) =0.5 (gross profit).
)。 Then the gross profit margin is 0.5 (gross profit)/1 (sales revenue) =50%.
Gross profit does not calculate other costs in the process of commodity flow. Sales revenue MINUS all costs is net profit. For example, if you sell eggs online, the purchase price of 1 egg is 50 cents, and the price is 1 yuan, but the freight cost is 10 yuan, then the net profit of 1 egg is negative 9.5 yuan, and all costs need to be calculated.