How is the profit rate calculated?

Profit rate calculation formula: profit rate (cost profit rate) = profit/cost × 100%.

Calculation formula of sales profit rate: sales profit rate = total profit of main business/operating income × 100%.

Profit rate is the transformation form of surplus value rate, and it is another rate calculated by different methods for the same surplus value. If P' stands for profit rate and c stands for all prepaid capital (c+v), then profit rate P'= M/C = M/(C+V). ?

Profit rate is a relative index reflecting the profit level of an enterprise in a certain period. Profit rate index can not only assess the completion of enterprise profit plan, but also compare the management level between enterprises and in different periods to improve economic benefits. Cost profit rate = profit/cost × 100%, and sales profit rate = profit/sales × 100%.

Extended data:

Profit rate and surplus value rate are different ratios obtained by comparing the same surplus value with different amounts of capital. The profit rate indicates the appreciation degree of all prepaid capital, which is always less than the surplus value rate in quantity, thus covering up the exploitation degree of capitalism. The profit rate is constantly changing, and the main factors that determine and affect the profit rate are:

Other things being equal, the higher the surplus value rate, the higher the profit rate; On the contrary, the surplus value rate is low and the profit rate is low. Therefore, any method that can improve the surplus value rate will increase the profit rate accordingly.