Profit margin is usually expressed as a percentage. Cost profit rate = profit/cost ×100%; Sales profit rate = profit/income × 100%

The profit rate is constantly changing, and the main factors that determine and affect the profit rate are:

1, surplus value rate. 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.

2. The organic composition of capital. The organic composition of capital is high and the profit rate is low; The organic composition of capital is low and the profit rate is high.

3. Capital turnover rate. The capital turnover speed is accelerated, and the annual surplus value rate is improved, thus improving the annual profit rate. The annual profit rate of capital changes in the same direction as the capital turnover rate.

4. Saving of constant capital. In the case of a certain surplus value rate and surplus value, saving constant capital can reduce prepaid capital, thus improving profit rate.

Extended data

The level of profit margin also depends on the following three factors:

1. Organic composition of capital. Under the condition of fixed surplus value rate, the profit rate is inversely proportional to the organic composition of capital, that is, the lower the organic composition of capital, the more living labor absorbed by a certain amount of capital, the more surplus value extracted and the higher the profit rate; On the contrary, the opposite is true.

2. Capital turnover rate. The profit rate is generally calculated on a one-year basis. Assuming that other conditions (organic composition of capital, surplus value rate and working day length) are the same, the annual profit rate is directly proportional to the capital turnover rate, but inversely proportional to the length of capital turnover time.

3. Save the use of constant capital. For example, saving working conditions at the expense of the health of hired workers can reduce the expenditure of constant capital, thus improving the profit rate; Through technical progress and the improvement of labor productivity, excreta (waste residue, waste water, waste gas, etc.). ) can be reduced and comprehensively utilized, which can not only reduce the expenditure of constant capital, but also increase the income, thus improving the profit rate.

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