What is the main business profit margin and how to analyze it
The main business refers to some business transactions of an enterprise, and the profit margin of the main business is the proportion of the profit of the enterprise's main business during a certain period of time. This is a simple description. What is the profit margin of the main business? How to analyze the profit margin of the main business? Because many companies operate in a diversified manner, when analyzing their main business, you need to understand the profit model of the main business in order to analyze it.

What is the main business profit margin and how to analyze it (Figure 1)

The main business refers to some business transactions of an enterprise, and the profit margin of the main business is the proportion of the profit of the enterprise's main business during a certain period of time. This is a simple description. What is the profit margin of the main business? How to analyze the profit margin of the main business? Because many companies operate in a diversified manner, when analyzing their main business, you need to understand the profit model of the main business in order to analyze it.

What is the main business profit margin?
The main business profit margin refers to the ratio of the main business profit to the net income of the main business during a certain period of time;

Main business profit margin=(Main business income - Main business cost - Taxes and surcharges)/Main business income * 100%

Main business refers to the most core and important business among all the businesses of an enterprise. For enterprises with a single business, it is easy to see what their main business is from the proportion of revenue, but for large group companies, their business scope is wide and complex, making it difficult to judge;

For example, Tencent, many people believe that it is already an investment company because its investment return is high, so in actual judgment, it is necessary to combine various aspects of the enterprise's judgment;

The net revenue from the main business of the enterprise is the net revenue from the main business after deducting sales discounts and sales discounts.

What is the main business profit margin used for?
The profit margin of the main business reflects the profitability of the enterprise by calculating the profit of the main business. Generally speaking, the main business of a company is the main source of its operating income. The stronger the profitability of a company's main business, the stronger its overall profitability.

What should we pay attention to when analyzing the profit margin of our main business?
With the diversification of enterprise operations, especially large group companies, operating multiple businesses has become the norm, and it may be difficult to distinguish which one is the main business;

For example, some emerging Internet companies operate many businesses involving different fields. In addition, the main business of some enterprises may not necessarily be the main source of their profits. For example, some companies operating food delivery services may have low profits, but food delivery can bring them sufficient customer traffic, allowing other businesses of the company to benefit from its customer traffic and earn more profits for the company;

Due to the innovation of business models or the increasing complexity of enterprise management, report analysis has become more complex, rather than as simple and clear as traditional enterprises;

The profit margin of the main business has not changed. By analyzing the profitability of the company's main business, the concept of profitability is reflected. Although the business operations of enterprises are complex and diverse, and their business models are innovative, as long as one understands the main profit models of the enterprise, one can judge its profitability.

Conclusion: The main business profit margin reflects the profitability of a company by analyzing its ability to generate profits from its main business. Due to the increasing diversification and complexity of enterprise operations, it is necessary to identify the main profit model of the enterprise based on its situation.

The above is the main business profit margin written by an accounting coach. How to analyze the main business profit margin. The article also states that as long as the main profit model of the enterprise is clear, the main business of the enterprise can be analyzed. The profit margin of the main business reflects the profitability of the enterprise.