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Profitability Ratio Of Enterprises

2010/11/24 11:45:00 35

Profitability Ratio Of Enterprises

Profitability ratio refers to the ability of an enterprise to earn profits in normal operation. It is the basis for the survival and development of enterprises, and it is a very concerned indicator in all aspects. Whether investors, creditors or managers of enterprises have paid more and more attention to the profitability of enterprises.


Composition of profitability ratio


There are many indicators reflecting the profitability of enterprises. usually It mainly includes sales net interest rate, gross sales margin, net asset interest rate and net return rate.


(1) net sales interest rate


The net sales rate refers to the percentage of net profit and sales income. The formula is:


Net sales rate = (net profit, sales revenue) * 100%


Note: this indicator reflects the net profit per yuan sales revenue, which represents the level of income from sales revenue.


(two) gross margin of sales


Gross profit margin is the percentage of gross profit in sales revenue, and gross margin refers to the difference between sales revenue and sales cost. The formula is as follows:


Gross margin of sales is [(sales revenue - sales cost), sales revenue] * 100%


Note: gross profit margin is the initial basis of the net sales rate of enterprises, and not enough gross margin can not. profit 。


(three) net asset interest rate


Net asset interest rate is net profit and average assets. Total The percentage.


Average total assets = (initial assets total + end assets total) 2


The formula for calculating net asset profit is:


Net asset interest rate = (net profit, average assets total) * 100%


The higher the index, the higher the utilization efficiency of assets. This shows that enterprises have achieved good results in increasing revenue and reducing expenditure and saving funds.


(four) return on equity


Net assets yield is the percentage of net profit and average net assets, also known as net value return rate or equity reward rate.


The formula is:


Net assets yield = net profit average net assets * 100%


Average net assets = (net assets at the beginning of the year + year-end net assets) 2


The rate of return on equity that reflects the owner's equity is highly comprehensive.

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