The company has 50 employees, annual revenue of more than 12 million yuan, and a net profit of 15 yuan. Is this reasonable?

Our company is a trading company with only 18 people. Our annual operating income is close to 200 million yuan and the net profit is 12 million yuan!

At first I don’t know whether what the questioner asked is reasonable, and from what angle? After answering the question, I understood that he was lamenting his misfortune to his boss and was angry with him for not fighting!

Let’s first make an economic calculation based on the data.

12 million * 15 = 1.8 million. This is the company’s net income for a year, which means it goes to the boss’s pocket. money in it.

Then popularize an important indicator: profit per capita

Profit per capita refers to the ratio between the total profit of an enterprise and the total number of employees of the enterprise in a certain period. This is a measure of the labor force of the enterprise. An important indicator of efficiency.

The per capita profit of this company is: 180/50=36,000 yuan. Let’s take a look at the world first. According to the data in 2018:

Ranking first in the world is the United States Financial Industry The giant Fannie Mae, yes, the one that almost died, had a per capita profit of US$1.759 million.

The second place is the biopharmaceutical company Gilead. Yes, it is the Gilead that I have been hearing about these days, with per capita profit of more than 1.5 million US dollars.

The third place is Freddie Mac, the brother who almost died, with per capita profit of 1.3 million US dollars.

Four Chinese companies are on the list among the top 20. Industrial Bank, ranked 20th, has a per capita profit of US$140,000, which is equivalent to almost 1 million yuan. Let’s take a look at the per capita profits of various industries in China.

It’s still the data from 2018. The data here are all medians, that is, averages. The per capita profit of the company listed by the question is between textiles and clothing and electronics, and it is at the bottom.

In other words, the company listed by the question is a little better than the sixth-to-last average among the 28 listed industries in terms of profit per capita.

So you ask, is it reasonable for a company of this size to make so much money? If such a company is thrown into the crowd, the splash will not be seen.

I guess the employees are thinking about it,

The boss is thinking about it,

So, by the end of the answer, I probably understand that the questioner hates this boss for not living up to expectations!

What is the situation in your company? Have you ever done some calculations like this to see what your level is?

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I am @兴同商道 Commercial Real Estate 20 years of operation, partner of a leading financial company. Serious financial intelligence, interesting sharing.

As a business operator and boss, it is somewhat inappropriate to think and ask questions from this perspective. To put it another way: If you are pondering this kind of question in your head, the person asking the question should not be the boss! If you can really run your business to this level of net profit margin and revenue, you shouldn't ask such a somewhat speechless question.

The old ghost's words are a bit harsh, but this is the most instinctive view of a person who has experienced it. I hope the subject understands.

Lao Gui talks about some very important issues from a business perspective. I hope it can be of reference value to you, and I also hope that the subject can listen to it! 1. The company's net profit margin can reach 15, which is already very high

It is true that the profits of various industries vary greatly, but from the perspective of "net profit margin", being able to have 15 is considered very powerful. Enterprise! This is the "net profit margin"!

Although the level of gross profit is an indicator in the business management process, the business operation reflected in the net profit is more critical. The net profit of most companies is far less than 15%. This is an indisputable reality. 2. There is no need to show the number of employees and annual income of the company for everyone to evaluate.

Because in different industries, the difference in average output value of a single employee can be described as "a thousand miles away".

In some industries, 50 employees can generate a turnover of hundreds of millions or hundreds of millions. In some industries, 50 employees can generate a turnover of tens of millions, which is considered very good. Therefore, it is very unreasonable to let others evaluate you when you tell yourself about your industry. 3. It doesn’t matter whether it is reasonable or unreasonable! What matters is that you as the boss: whether the total profit matches your personal ability!

According to the description of the subject, a personal net income of 1.8 million a year is already very good for many bosses. Of course, it would be boring if you have to compare it with Jack Ma’s Alibaba.

Whether others think is reasonable or unreasonable has no meaning. After you evaluate your ability, dedication, value, etc., it is fundamental whether you are satisfied with your income of 1.8 million! Reasonable or unreasonable is meaningless. Anyway, you earned 1.8 million. What do you think is reasonable or unreasonable? 4. There is an important indicator: whether your comprehensive expenditures in all aspects are conducive to the long-term development of the enterprise and the continuous and stable gain of more income - this is an important indicator to measure whether the pure profit is reasonable!

Business operations require various costs and expenditures, and various expenditures are intended to generate revenue and serve to generate long-term profits in the future.

The amount of net profit and net profit rate in a single year is not the focus. The focus is to think, analyze and evaluate whether the company's expenditures in various sectors are reasonable from the perspective of operators and managers!

Some companies may spend less in some sectors, which is detrimental to the company's continued profitability; some companies may have cost waste and there is no need to invest heavily in certain aspects, so they can reduce expenditures. Increase net profit margin. I don’t know the specific situation of the company where the subject of the question is located. I need to conduct a comprehensive inspection and evaluation by myself.

For example, if the salary packages and reward mechanisms given to employees in the past were not ideal and were not conducive to the long-term stability and loyalty of outstanding employees, then it is likely that the relevant cost expenditures in this sector will need to be increased in order to It is conducive to the stability of outstanding team members and the attraction of more outstanding talents.

Remember: As a boss, you should never simply come up with parameters such as "50 people, 12 million turnover, 15 net profit margin" for others to evaluate, and this is not the boss's thinking What a way!

The above is for reference only. The more you share, the more you gain!

Our company has 8 people, two R&D personnel, four assemblers, two after-sales personnel, and all accessories are outsourced. Last year, we had a turnover of more than 60 million yuan and a net profit of more than 24 million yuan. We have three shareholders, each with a share of More than 800W

Unreasonable. How much salary does a team of 50 people need to pay in a year?

There are also rent, water and electricity. . .

The data makes sense! The company has 50 employees, annual revenue of more than 12 million, and a net profit of 15. If it is a serious business, such a profit rate is quite reasonable from the data point of view.

1. The profit margin is relatively reasonable

Revenue of 12 million yuan and net profit margin of 15 yuan, that is to say, the company can earn a net profit of 1.8 million yuan in about a year. Judging from the actual situation, a net profit margin of 15 is also a pretty good performance, and it can be considered a relatively normal business.

2. 50 people is indeed a lot of people

The company has 50 people, which is indeed a lot of people compared to the annual revenue of 12 million. You know, if the annual salary of 50 people reaches the national average of 75,000, the salary is 3.75 million a year. If you include five insurances and one fund, etc., the annual salary may reach about 4.5 million.

3. The company's gross profit margin may reach around 200

Extrapolating from the above data, the company's gross profit margin may reach around 200.

The annual net profit is 1.8 million yuan, and the labor salary cost is about 4.5 million yuan, plus the depreciation of factory machinery, rent, and other expenses, as well as the cost of the product.

The annual revenue is 12 million, minus the 1.8 million profit and the salary cost of 4.5 million, leaving 5.7 million. If we also consider the depreciation of factory machinery, rent, water and electricity bills, etc., as well as the cost of the product, Then the company's gross profit margin is at least about 200.

In other words, the product cost is about 40 yuan, and it needs to be sold for 120, which means that the gross profit margin must reach 200, and it is possible to earn a net profit margin of 15.

Therefore, if we extrapolate from the data, the company's gross profit margin may reach 200.

4. There are many such companies

There may be many companies with a gross profit margin of 200, such as some clothing companies and some catering companies. Among these companies Some are companies with a large number of employees and high gross profit margins, but not very high net profit margins.

This is quite normal, if there are a lot of them in the manufacturing industry. I know a sheet metal processing factory with 23 people. The annual output value is 9 million, and the annual profit is about 1.4 million.

There is also a friend who makes small machinery and equipment in Guangdong. The annual output value is about 23 million, and the actual profit is about 2 million. There are 42 workers, the factory area is more than 3,000 square meters, and the rent is quite high.

Trading companies are much better than entities. These days, rich people don’t like to open physical factories. Many physical factories are hard and tiring, with low profits and little money.

It’s quite reasonable. Our company has a maximum of 60 people. The annual output value is 50 million, and may reach 80 million next year. The profit reaches 60. Most of them belong to several shareholders. 90% of employees receive dead wages. It takes time to get a salary increase.

With fifty employees, the annual revenue is only 12 million, and the per capita output value is only 240,000. In such a situation, it is impossible for personnel costs, production and operation costs, tax rates, etc. to be 15% The net profit will be so bad that the boss goes bankrupt. If a company cannot guarantee a gross profit margin of 30%, it will definitely suffer losses in China. Don't ask me, you can ask professional financial personnel.

Existence is reasonable!

The China of today is no longer the China of 10, 20, or even 30 years ago.

It can be said that many enterprises and many entrepreneurial methods in China have shifted from offline to online, and even offline-online models have emerged.

Therefore, those factory-type entrepreneurial methods that relied on thousands or tens of thousands of people to maintain turnover are becoming increasingly rare.

In the future, there will be more and more independent and small-scale companies.

This is the change and charm brought by the Internet.

I have some friends who work in some very small companies. It seems that there are only a dozen or even dozens of people in a company, but they have created millions of profits, thousands of Performance of tens of thousands, even hundreds of millions.

This is nothing new. This is the trend brought by the Internet.

In the future, there will be more and more "micro and small companies" that can replace large factories with tens of thousands of people and create income that is unimaginable.

For example:

Li Jiaqi’s team currently only has a few hundred people, but the performance and profits he can create even beat many listed companies;

Similarly, an Internet celebrity team may only have a dozen people, but the value they create is higher than most small and medium-sized enterprises;

This is the future trend.

So, I think the company has 50 employees, annual revenue of more than 12 million, and net profit of 15, is it reasonable?

In this day and age, reasonable! !