Traditional Culture Encyclopedia - Traditional virtues - Why is it that some companies have tens of billions of dollars in revenue and only a few million in net profit? I hope that the experts who have the knowledge will give me a detailed explanation.
Why is it that some companies have tens of billions of dollars in revenue and only a few million in net profit? I hope that the experts who have the knowledge will give me a detailed explanation.
This is very normal
And it has a lot to do with the industry in which the company is located
There is an indicator called the operating profit margin, which is the profit divided by the revenue. Some traditional industries have low profit margins. Especially the big state-owned enterprises, high production costs and high overhead.
And some emerging industries, electronics, information technology, media, these relatively speaking, the profit margin is much higher
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