Export profit and loss rate = export profit and loss/total export cost * 100%= (RMB net export sales-total export cost)/total export cost * 100%.

Exchange cost = total export cost (RMB)/net export foreign exchange income (foreign currency), in which the net export foreign exchange income is FOB net income (net foreign exchange income after deducting labor expenses such as commission and transportation insurance).

Basic introduction

Foreign exchange cost refers to the cost of how many yuan of domestic currency (RMB) an export commodity needs to exchange for one unit of foreign exchange. In other words, how many yuan of "total export cost" can be exchanged for "net income foreign exchange" of unit foreign currency. The cost of foreign exchange is controlled at 5 to 8. If it is higher than the bank's foreign exchange rate, the export is a loss, otherwise it is a profit.

Main applications

As can be seen from the formula, the exchange cost is directly proportional to the total export cost and inversely proportional to the net foreign exchange income. Using this relationship, the exchange cost is often used to assess the operating results of export commodities, and its main functions are:

(1) Comparing the exchange costs of different kinds of export commodities is one of the bases for adjusting the export commodity structure and "turning losses into profits".

(2) Comparing the exchange costs of similar export commodities to different countries and regions is one of the bases for choosing export markets.

(3) Compare the exchange costs of similar goods exported by different regions and companies, find out the gap, tap the potential and improve management.

(4) For the same export commodity, compare the exchange costs in different periods and the same period, so as to compare the increase and decrease of exchange costs.

The reason why the exchange cost is too low is that the price of raw materials purchased by enterprises is too low, but the price is high and the profit is too high.