# ol

## Calculation formula

The calculation formula is: sales profit margin = total profit / operating income × 100%

sales gross profit margin and sales profit margin are different two Indicators, because the latter has been eliminated during the time, the former still contains the cost (such as management fees, financial expenses, etc.).

It can be seen from both formulas:

sales profit margin = total profit / operating income × 100%

and total profit = operating income - business costs - cost. Therefore, it can be seen that the sales gross profit margin is generally greater than the sales profit rate.

Sales profit margin influencing factors: Sales profit margin has a great role in interest rates. The sales profit margin is high, and the rights and interest rates are also high; in turn, the profit margin is low. Factors affecting the sales profit rate are sales and sales costs. The sales cost is low, the sales rate is high; the sales cost is low, and the sales rate is low.

## Type Form

Sales Profit Rate:

The ratio of total sales profit and total sales revenue. It indicates the profits obtained by unit sales revenue, reflecting the relationship between sales revenue and profit.

Cost Profit Rate:

The total amount of sales profit and total sales cost is the ratio of total sales costs. It indicates the profit obtained by the unit sales cost, reflecting the relationship between cost and profit.