Do You Know The Rate Of Profitability?

1. sales net profit margin sales net profit rate is the ratio of net profit to net sales income, that is, net sales profit = net profit / net sales x 100%. This index is an important index reflecting the profitability of enterprises. The higher the index, the stronger the ability of enterprises to get net profit from sales income. The lower the index, the weaker the ability of enterprises to obtain net profit from sales income.

The factors that affect the net profit margin include commodity quality, cost, price, sales volume, period cost and tax.

2. the net profit rate of assets, the net profit rate of assets, is the ratio of the net profit to the average assets of an enterprise, that is: the net profit rate of assets = the total net profit / assets average 100% total assets = (the total assets at the beginning of the period and the total assets at the end of the term) 2. The higher the net profit margin of the assets is, the stronger the profitability of the enterprises making use of all assets; the lower the net profit margin of the assets, the weaker the profitability of the enterprises using all the assets.

The net profit rate of assets is directly proportional to net profit and inversely proportional to the total assets.

3. the actual earning capital profit rate of the paid up capital profit ratio is the ratio of the net profit to the paid in capital, that is, the real earning capital profit ratio = net profit / paid capital * 100% the higher the profit rate of the paid in capital, the stronger the profitability of the enterprise's actual investment capital. The lower the profit margin of the paid in capital, the weaker the profitability of the enterprise's actual investment capital.

Impact on actual receipt

In addition to the factors that affect net profit, the scale of corporate liabilities also has a certain impact on it. Generally speaking, the increase in liabilities will lead to an increase in the profit margin of paid up capital.

4. net assets profit margin net assets profit rate, also known as owner equity profit rate, roe, net return rate, etc., is the ratio of net profit to average balance of owner's equity, that is: net assets profit ratio = net profit, owner's equity average balance 100%.

The higher the net profit margin, the stronger the profitability of the owners' equity and the lower the net assets profit rate, the weaker the profitability of the owners' equity.

In addition to the profit level of enterprises and the size of owners' equity, the factors that affect net assets profit margins also affect the level of corporate liabilities. Generally speaking, the increase in liabilities will lead to an increase in net assets profit margin.

5. the basic interest rate basically earned interest rate is also known as the EBIT profit margin.

The ratio of the total balance to the total assets is: the basic interest rate = the pre tax profit / the average balance of the total assets, which reflects the overall profitability of the enterprise.

6 earnings per share, also known as earnings per share, is the ratio of total net profit to common stock. That is: earnings per share = total net profit, common stock number. This index is the most commonly used indicator to reflect the profitability of a company.

The more earnings per share, the stronger the profitability of the EPS, the more the investors' returns.

The less, the weaker the profitability of EPS.

There are two factors that affect earnings per share: first, the level of profitability; and the two is the number of stocks.

7. dividend per share is the ratio of common stock dividends and common shares of a joint stock enterprise, that is: dividend per share = net profit / common stock number. This index is an important index affecting the stock price of an enterprise.

The more dividends per share, the higher the returns to investors, the higher the price of corporate stock. The less dividend per share, the less the returns to investors, and the lower the price of corporate stocks.

There are two factors that affect the dividend of your partner: one is the earnings per share of the company, and the other is the dividend policy of the enterprise. The two is the dividend policy of the company.

8. P / E ratio is the ratio of market price to earnings per share of common stock. That is, the ratio of earnings to earnings per share / market earnings per share is higher, showing that investors are confident in the future of the company. The higher the market value of the enterprise is, the lower the p / E ratio indicates that investors lose confidence in the future of the company and the market value of the enterprise is lower.

However, because the stock market is disturbed by abnormal factors, the stock price will be abnormal, so we should pay attention to it when we use this index.