The so-called loan risk degree refers to the measure of loan risk degree. The loan risk degree is a concrete quantitative index that can be calculated. It is usually greater than zero and less than 1. The greater the loan risk, the less likely it is to recover the loan principal and interest on schedule. On the contrary, the smaller the loan risk, the greater the possibility of recovering the loan principal and interest on schedule.
Gross profit margin is the percentage of gross profit and sales income (or operating income), in which gross profit is the difference between income and operating cost corresponding to income, which is expressed by the formula: gross profit = gross profit/operating income × 100%= (main business income-main business cost)/main business income × 100%.