after learning the first and second modules "cash flow" and "business ability", today I began to learn the third module "profitability".
let's see if the company we want to invest in is doing a good business.
I. Overview of profitability
The indicators of profitability are the most in the five modules, but there are only six
, namely "gross profit margin, operating profit margin, operating safety margin, net interest rate, earnings per share (EPS) and return on shareholders (ROE)"
in the "profitability".
numerator: gross profit = operating income-operating cost. It's all in the income statement ↓
III. Example calculation
Speaking of profitability, I have to mention the peerless beauty "Kweichow Moutai".
let's calculate the gross profit margin of beautiful women in 2116.
molecule: "operating income" and "operating cost" are both in the "income statement".
in p>2116, the data were 38.862 billion yuan and 3.411 billion yuan respectively.
gross profit = 388.62-34.11 = 35.452 billion yuan
Therefore, its "gross profit margin" in 2116 =354.52/388.62=91.2%.
compared with the "financial report theory", the result is consistent, which is really 91.2%!
Let's take a look at Pien Tze Huang, a rising star of traditional Chinese medicine. Let's take a look at her gross profit margin:
Molecules: "operating income" and "operating cost" are all in the income statement.
in p>2116, the data were 2.319 billion yuan and 1.179 billion yuan respectively. Gross profit =23.19? 11.79 = 1.13 billion yuan
Therefore, its "gross profit margin" in 2116 =11.3/23.19=48.9%.
compared with the "financial report", the results are consistent, and the calculation is completed!
This data is on the middle, so it can't be compared with Kweichow Moutai.
Fourth, the nine swords of Kweichow Moutai
Let's analyze why the gross profit margin of Kweichow Moutai is so high.
Mr. p>MJ has a saying:
Maotai is obviously expensive. How do we understand the latter sentence in Maotai?
Ten years ago, Moutai was not the king of wine. At that time, the scale of Wuliangye was much larger than that of Maotai.
However, Wuliangye later chose to continuously expand its scale and production capacity, and all high-end, medium-end and low-end wines were produced on a large scale. There are hundreds of Wuliangye series wines on the market, and in the end, its positioning in the market is uneven!
but what about maotai?
It is very dedicated. There are only two kinds of wines: Fen-flavor and Maotai-flavor, and it is only used in the high-end market.
Compared with Wuliangye, Maotai takes a differentiated route. Maotai creates scarcity effect in the market, so that the price of wine can be continuously increased and the final profit is also very considerable.
This is also the main reason why Maotai can achieve today's status:
It only makes one product, and constantly pushes the high-end positioning of this product into consumers' ideology, instead of pursuing scale effect.
it can be seen that strategic positioning is very important for the development of enterprises! We can also see the impact of strategy in the financial report!
V. Analysis of "gross profit margin" indicators
Industries with high "gross profit margin" are commonly known as profiteering industries, and there are countless industries with low "gross profit margin".
specific industries should be analyzed in detail.
For example, in the catering industry above, the gross profit margin is usually around 51% because of the high cost of renting water and electricity, so that there is enough profit to pay high operating expenses.
The gross profit margin of Quanjude in five years is basically between 56% and 61%.
the gross profit margin of a catering company can't be as high as 81%~91%! ! ! If such an exaggerated gross profit margin is reached, it shows that the boss's cost control has gone beyond the scope of common sense.
so, if the gross profit margin of a restaurant can reach 81%~91%, it must be that mutton becomes dog meat and dog meat becomes weak meat! Let's not go.
financial report can not only show profitability, but also show food safety issues.
VI. Characteristics of gross profit margin
Summarize the three characteristics of gross profit margin
Teacher p>MJ suggested
Don't invest in any company whose gross profit margin has been negative for three consecutive years!
therefore, it doesn't make much sense to look at the gross profit margin together for five years and see the trend from the figures, instead of just looking at a single indicator for one year.
summarizing the indicator of "gross profit margin" wants to tell us two things ↓
VII. Gross profit margin statistics of the industry
The following are different gross profit margin data of various industries summarized by Mr. MJ:
According to this standard, we can compare whether each company meets the industry standards and judge what level this company belongs to in the industry.
VIII. Peer comparison
Let's take the liquor industry as an example and look at various indicators.
Without comparison, there will be no harm. The average gross profit margin of Kweichow Moutai in five years is as high as 92.24%, which is really a good business!
At the same time, it can maintain a gross profit margin of more than 91% in five years, which shows that it has long-term and stable profitability and is far ahead of other peers.
Similar to the comparison of liquor industry mentioned above, all the major profit indicators, such as gross profit margin, should be compared in the industry in order to compete.
9. Is extended reading
a good business? It's enough to judge this
summarize the above contents with mind map ↓
I'll bring you afternoon tea dessert.