Category: Money tips Release Date: 2006-07-14
Is the so-called "world-hee-hee are all run benefit to; world Rangrang are all run to the benefit", for an enterprise, profit is still its first duty. So how to measure corporate earnings capacity? In this issue, we invite the securities industry veteran Mr. Zhang Hongji to introduce the operating margin.
Haidian District, Beijing shareholders Ho: What is the role of operating margin?
Zhang Q: popular speaking, the operating margin is used to reflect the business operating income for every dollar the amount of how much gross profit, which is the basis of net profit, gross margin is not large enough will not be able to form corporate earnings. In fact, the measure of profitability of the business size can not just look at operating income, since operating income also included in operating costs. Only after deducting the costs can be used to compensate for the operating expenses of enterprises. Its formula is as follows: operating margin = (main business revenue - Main business costs) / the main business income × 100%.
From the style can be seen that the higher the main business of the gross profit margin, then the profit after deducting all the expenses also higher, stronger corporate profitability. In addition, due to the higher gross margins, the pricing of its products to more flexible and often used in domestic business marketing tool - a price war to gain a favorable position.
Beijing Fengtai District, Ms. Zhao investors: How to use this index analysis of listed companies?
Zhang Reporter: listed companies in the analysis of financial time, this indicator is of course the higher the better. Specific to a certain time when a business, but also, and other companies in the same industry to compare. For example, the food service industry's gross margin is generally higher, you can not uses the staff of the indicators compared with the steel industry.
In addition, by this indicator can also be from a historical point of view the growth of business context, which is the analysis of the SME board is especially important when a listed company. Because many of the SME board is not the basis for the pricing of listed companies mature companies to calculate price-earnings ratio, but the prospects for the future development of the enterprise as a very high weight. At this time, investors can change in gross profit margin to see the development of enterprises is to speed up or slow down the.
To Suning Appliance, for example, the company's IPO in July 2004, companies have maintained a high growth rate, after listing the company raised a lot of money, began to see chain stores cloth to the smaller cities. Then Suning Appliance is a major problem facing the decline in gross margins, that is the same shop, and not get into in Beijing, Shanghai and other cities when the corresponding profit. This shows that Suning Appliance shop maximize profits more than relying solely on the size of the model has encountered a bottleneck, if not promptly change, "Su Ning myth" perhaps the end.
Haidian District, Beijing shareholders Ms Lau: This indicator is too high mean?
Zhang Q: When investors see a company's gross margin was significantly higher than the same industry when other companies, but also a concrete analysis of why. To learn more about the company's products because of high technical content, or because of administrative monopoly, or the major shareholders of profits specifically for transportation.
A few years ago, large shareholders tend to engage in transfer of profits will take this approach. Major shareholders through the creation of a sales company, to well above the market price to buy company's products, so that both the listed company's products sell at high prices, but also save a lot of selling expenses. A typical example in this regard in Lam shares, when questioned Lam Liu Shu-wei, a main reason is that ex-factory price of its products even more than the market retail prices even higher, but also for the blue field Ouzhi out huge sums of money to advertise in the CCTV is not is a listed company, but directly controlled by large shareholders, a marketing company.
