Gross industrial output is an economic indicator that measures the output of industrial final products and the total value of industrial services provided by an enterprise within a specific time frame (e.g., one month, cumulative to the current month, etc.). Through the tracking and analysis of this value, the trend and range of changes in the scale of industrial production can be obtained.
Special attention should be paid to the fact that gross industrial output includes not only material goods, but also industrial services provided.
How to calculate the gross industrial output:
1.Product output multiplied by sales unit price: Gross industrial output value = output of products in the current month Sales unit price of corresponding products; It should be noted that the unit price of sales does not include VAT, because VAT is not considered as part of the income of the enterprise.
2.Main business income plus inventory commodity difference method:
Gross industrial output = main business income for the month + closing balance of goods in stock - opening balance of goods in stock.
Among them, the main business income of the current month = the number of products sold in the current month and the sales unit price of the current month;
Closing balance of inventory = Closing quantity of inventory goods Corresponding to the cost of goods;
Opening balance of inventory = Opening quantity of inventory = Cost of goods corresponding to the opening quantity of inventory goods.
Therefore, the simplified formula for calculating gross industrial output can be expressed as:
The number of products sold in the current month The unit price of the current month - the cost of sales in the current month) + the production volume of the current month The cost of sales in the current month.
In the calculation of gross industrial output, the principles of industrial production and final products should be observed. Only qualified products completed by the enterprise in the reporting period can be included, and must be the final products produced by the enterprise that have passed the inspection and do not require further processing. The calculation should also be based on the principle of "factory law" to avoid double counting the value of the same product within the enterprise.
Please note that the calculation of gross industrial output also needs to meet the principle of substituting price for quantity. That is, it should be calculated based on the current market, because it changes with factors such as market supply and demand, macroeconomic policies and industry competition. Therefore, the total industrial output value should be adjusted accordingly according to the market.
Mastering these calculation formulas and principles is essential for effective financial management of industrial enterprises. In a broader perspective, an understanding of market trends, industrial production constraints, and product sales is also critical to ensure the accuracy and reliability of calculations.
Gross industrial output measures the output of products of industrial enterprises in a specific period, expressed in monetary units, including depreciation, amortization, investment income, taxes, and the total value of social consumer goods, etc., and excludes the cost of purchase.
Operating income, on the other hand, focuses on the pre-tax income that enterprises regularly obtain from the sale of products, the core of which is the revenue from the sale of goods, fees for the provision of services and investment income, after deducting the costs of depreciation, amortization and purchases.
The essential difference between the two is that the gross industrial output value is the amount of value created by the enterprise's production activities, while the operating income only represents the actual amount of income obtained from the enterprise's sales activities. In terms of application, the total industrial output value is used to measure the production capacity and economic strength of the enterprise, and the operating income can be used to analyze the sales efficiency and profit capacity of the enterprise, which are applicable to different financial management and decision-making levels.