Profit Margins Explained in One Minute: From Definition/Meaning to Formulas and Examples
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- เผยแพร่เมื่อ 14 ต.ค. 2024
- Profit margins represent one of the most popular indicators investors use to assess the viability of a potential or existing investment. It's quite remarkable how a simple data point with a simple formula (or let's say formulas: one for the gross profit margin, one for the net profit margin, one for the operational profit margin and so on) can be so widely-used, so it would be a shame not to properly understand what profit margins are all about.
Through this video, the concept is explained in just one minute, from definition and meaning to the various formulas you can use, along with examples of course!
In a nutshell, you will understand what the profit margin is as well as how to calculate it properly in just one minute. The definition is straightforward, the formulas are straightforward as well and the examples used in this video will make it crystal-clear just how easy it is to wrap your head around profit margins.
Of course, before watching this video about profit margins, I'd recommend checking out the video in which revenue and net income/profits are compared, just so you can be certain that you have a solid foundation. The link to the video in question is shared as a card, or you can simply click on the link below:
• Revenue vs. Gross Inco...
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THANKS A LOT .. HEARING FROM ALMOST 10 YEARS FROM EXPERTS BUT ONLY NOW UNDERSTOOD
I'm here to serve :)
This video is the gift that keeps giving
Thank you!!!! Concise, simple, easy to follow. You’re the best.
Very happy you feel that way Hannah, thank you so much!
I love this channel, thanks for frequent uploads!
You're more than welcome, thanks a lot for finding time to say something nice, means a lot!
@@OneMinuteEconomics
Basically. Payroll checks are profits. That official transfer of funds from a company checking account (second person pretence) to a residential account (first person pretence).
Vs. a company sending out checks to buy materials is margins. That transfer of funds to a commercial account (second person pretence) to a commercial account, (second person pretence).
In normal supply and demand, a company is obligated to reinvest the margins to grow the supply infrastructure. They have second person pretence obligations. Paying customers to answer to.
The glass-steagall legislation separated banking first person pretence from second person pretence (profits/margins).
thank you very amazing video.. i just had one question in general in the stock market you should buy high percentage of profit margin.. right?!
Thanks for the kind words Aisha! Stock market investing has... well, changed quite a bit. Thus, many of the best buys of the past years have been companies that don't score that great on profit margin front, to put it mildly. This is especially true with let's say tech companies. Thus, there's unfortunately no one size fits all answer with respect to what to look for when investing. When you get a chance to, I'd highly recommend checking out my personal finance playlist, it contains over 100 vids but for content this important, the investment of time would be wise in my view: th-cam.com/play/PLhICud5IUwViBc1b-ZlRL3MA3splR9gmn.html
Thank you so much for this amazing video! Could you help me with something unrelated: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). Could you explain how to move them to Binance?
This helps a lot
One Minute Economics needs your help! Please give me a minute (heh) of your time by watching the following video if you find the channel useful, literally anyone can help (either financially or by spreading the word about my work): th-cam.com/video/io04ckq1X1M/w-d-xo.html
FEL Corporation spent $1,000 on the cost of goods sold during a fiscal period. They also paid $300 in marketing and advertising fees, $15 on interest fees related to loans and $1,000 in administrative fees and wages. FEL Corporation earned a total of $4,000 for the same period of time through sales.
Thank you! ☺
Thank YOU for the kind words :)
what is the gross profit if the elements of the income statemnt look as follows: secondary income 33,000; COGS 68.000; depreciation 500; sales 100,000?
a)32,000
b) 20,000
c)32,500
d)25,000
e) none of above answers is correct
Someone could help me? I don't know how to calculate that?
A)
A) 32000
Gross profit = Revenue - Cogs
whats the differance between Gross margin and Profit margin
JAY SITA RAM JI
Depending on Long Term unstoppable Profit field.
*) Lower margin = 🐁 🐀 Race Business Mindset .
*) Middle margin = Rabbit 🐇 Race Business Mindset .
BUT
*) BIGGEST MARGIN = THE MOVE'S OF TORTOISE 🐢 WAY .
I was expecting more but video ended
Will be elaborating further through future videos, would recommend keeping an eye on my microeconomics playlist, intend to keep adding to it this year: th-cam.com/play/PLhICud5IUwVjc6w7nR7wEmxKnOuH48nRQ.html
SUPER
to be honest this video is really useless :( How you explain what NPM and GPM are was nicely done. But it is totally not considered why one needs NPM and GPM. The purpose of these ratios is unclear.
im here because course careers have the most shiddy definition and ive been a half hour trying to understand it.
🙋👍👍
Profit is realized value. Marxism is atheist economics. Communism is systemic atheism.