But different industries, it is different corporate sales margins, such as real estate more than 40%, high-tech more than 30%, retail 15%, manufacturing 10%, construction 2% and so on, as for the 3% sales margin, relatively speaking, is on the low side.
Sales margin, is the total profit of the enterprise and the ratio between sales revenue, that is, the revenue after deducting all costs and expenses and losses of the balance of the profit, profit divided by operating income is the profit margin. It is based on sales revenue to analyze the profitability of enterprises, reflecting the level of sales revenue indicators, that is, the profit per dollar of sales revenue.
Calculation formula 1: sales margin = total profit / revenue * 100%
Calculation formula 2: sales margin = margin of safety × marginal contribution rate
Calculation of the company's 2 derivation process is as follows:
Sales profit = sales revenue - variable costs - fixed costs
Sales profit = marginal contribution - fixed costs
Sales profit = marginal contribution - fixed costs < /p>
Sales Profit = Sales Revenue * Marginal Contribution - Fixed Costs
Sales Profit = Sales Revenue * Marginal Contribution - Break-even Threshold Sales Revenue * Marginal Contribution
Sales Profit = (Sales Revenue - Break-even Threshold Sales Revenue) * Marginal Contribution
So: Sales Profit = Margin of Safety x Marginal Contribution
Both sides at the same time divided by the revenue, can be obtained: sales margin = margin of safety × marginal contribution rate
profit margin of the type of form:
1. Sales margin: a certain period of total sales profits and total sales revenue ratio, which indicates that the unit of sales revenue to obtain the profit, reflecting the relationship between sales revenue and profit.
2. Cost margin: a certain period of total sales profit and total cost of sales ratio, which indicates the unit cost of sales profit, reflecting the relationship between cost and profit.
3. Profit margin: a certain period of total sales profits and the ratio of the total output value, which indicates the profit per unit of output value, reflecting the relationship between output value and profit.
4. Capital profitability: a certain period of total sales profit and the ratio of the average amount of capital occupied, which indicates the unit of capital gained from sales profits, reflecting the effect of the utilization of enterprise funds.
5. Net profit margin: a certain period of net profit (after-tax profit) and the ratio of net sales, which indicates the unit of sales revenue to obtain after-tax profit, reflecting the relationship between sales revenue and net profit.