Profit Margin, Gross Margin, and Operating Margin - With Income Statements

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  • เผยแพร่เมื่อ 28 ก.ย. 2024

ความคิดเห็น • 108

  • @TheOrganicChemistryTutor
    @TheOrganicChemistryTutor  8 หลายเดือนก่อน +3

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    @adenikebello9158 2 ปีที่แล้ว +92

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  • @gemaisi_360
    @gemaisi_360 2 ปีที่แล้ว +10

    I used to be a dull in accounting but watching this, it becomes so much easy. Thank you for this video.

  • @anneallison6402
    @anneallison6402 4 ปีที่แล้ว +15

    Never thought you were gonna talk about somethinh like this, not only are your chemistry videos useful but also all your knowledge

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    @rommietheeya3647 3 ปีที่แล้ว +9

    I am literally sat in a seminar and you are explaining better than my teacher 🤦🏻‍♀️

  • @blossomblitz2071
    @blossomblitz2071 2 ปีที่แล้ว +3

    Thank you so much. God sent u to me cuz I didn't know how the heck I was going to do my assignment due tomorrow for university. Now it looks easy so thanks so much. Praise be to God.

  • @hemaethossain3086
    @hemaethossain3086 4 ปีที่แล้ว +3

    one of the best teacher I have ever experienced. you are priceless teacher...thank you so much!

  • @neversm6207
    @neversm6207 4 ปีที่แล้ว +83

    I just want to say thank you. I had to learn a month's worth of coursework in 5 days for my exam and I referred all the material from your videos. I got a 90% on the exam. Thank you so much you're a priceless tutor, and the fact that you take so much time to make us these videos means alot.

  • @kumaronlineplay
    @kumaronlineplay 4 ปีที่แล้ว +3

    Good Work Man. Very Easily explain. Keep it up.

  • @a7xfanben
    @a7xfanben 2 หลายเดือนก่อน

    Thanks for the simple explanations!

  • @maxwellvavana5066
    @maxwellvavana5066 2 ปีที่แล้ว +1

    Very easy to follow, great explanation. Thanks

  • @dr.chris8
    @dr.chris8 4 ปีที่แล้ว +3

    Hey sir. Hope you doing great. Am texting from Africa. Your videos have been of significant help to me and various people around. we really appreciate you for that bro.
    I just have a simple request, we all have been so curious of the voice behind the black board. Please please please, kindly send a video so that we know how you look like.
    That would be a good thing. Please respond .

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      @manahilqadeer2536 3 ปีที่แล้ว

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      @handwashing101 3 ปีที่แล้ว

      Google says it is Julio Gonzales to answer "who is the organic chemistry tutor?"

  • @oiboy626
    @oiboy626 3 ปีที่แล้ว +2

    Thank you so much for sharing and explaining this information!

  • @mattgargiulo3995
    @mattgargiulo3995 หลายเดือนก่อน

    please correct me if I am wrong but I think Operating Income should be sales - COGS - Operating Expenses. Therefore 800 - 500 - 600 => operating inncome of -300. You'd then divide this by your sales to get your operating margin.

  • @XYZarifox
    @XYZarifox ปีที่แล้ว

    I love how you can hear the resent in his voice - income tax...thats negative...that's an expense

  • @pubgmobileclashroyale4725
    @pubgmobileclashroyale4725 หลายเดือนก่อน +1

    Good video👍

  • @citizencoy4393
    @citizencoy4393 3 หลายเดือนก่อน

    Thank you so much for this video. Do you know where I could practice more of these problems?

  • @jeremiahmckenzie5532
    @jeremiahmckenzie5532 2 ปีที่แล้ว +1

    It's the profit margin that determines how strict management needs to get and be.

  • @monicaarcena9970
    @monicaarcena9970 ปีที่แล้ว

    Wow what a great video, thank you sir for your help. ❤️

  • @rapeisalwaysthewomansfault946
    @rapeisalwaysthewomansfault946 3 ปีที่แล้ว +3

    Who needs college when you have Organic Chemistry Tutor

  • @SongdetKhodr
    @SongdetKhodr 15 วันที่ผ่านมา

    Great analysis, thank you! I have a quick question: 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). How should I go about transferring them to Binance?

  • @anandairmamaasyaallah4382
    @anandairmamaasyaallah4382 3 ปีที่แล้ว

    i just wanna say thanks You so much this vidio is so benefits to me...i love you so much..... :)

  • @kevinsu9347
    @kevinsu9347 7 หลายเดือนก่อน +1

    sorry I have a question about question one, if the COGS is 500M and operating expenses are 600M, why total expenses are 640M instead of 500m+600m? Thank you

    • @chrishassard806
      @chrishassard806 หลายเดือนก่อน +1

      In that example,
      The COGS was 78.1% responsible for the Total Operating Expenses.
      As a food analogy, if Total Operating Expense was a pizza,
      COGS would be the Pepperoni and be on essentially 75% of the pizza.

  • @mr.d1571
    @mr.d1571 4 ปีที่แล้ว

    Thank you. Great Video!

  • @9IPbINCB3T
    @9IPbINCB3T 4 ปีที่แล้ว

    you are a great man

  • @skaterandrew
    @skaterandrew 3 ปีที่แล้ว

    Best teacher in the world!
    There’s one equation that won’t stop bugging me: Calculating Sales Price.
    If I bought a car for $1000 and I wanted to resell it to make a 30% margin. My intuition says that the price I should sell it for (to make 30% margin) should be $1,300.
    But in this pricing equation:
    Price = Costs/(1- % margin)
    Price = $1000/(1- 30%)
    Price = $1000/(1-0.30)
    Price = $1000/ (0.70)
    Price = $1, 428.00 (the real price I should sell the car to make a 30% margin!)
    Confirmation: 1,428 - 1,000/1,428 = 30% margin!
    Could anyone help me learn how to think about this calculation? Especially why the (1-% margin)? Why does the denominator need to be .70? Where am I wrong?

    • @skaterandrew
      @skaterandrew 3 ปีที่แล้ว

      I no longer want to use formulas without understanding the why’s.

  • @randomjose
    @randomjose 4 ปีที่แล้ว +1

    Thanks I was confused for a long time, thinking that if your cost of one item is $1 and sell it for $2 my margin was 100%.... lol

    • @royrockerfeller
      @royrockerfeller 3 ปีที่แล้ว

      Exactly. Millions of people still use this.

  • @kentrelledwards7877
    @kentrelledwards7877 2 ปีที่แล้ว

    Thank you ‼️

  • @Corum-x3s
    @Corum-x3s 4 หลายเดือนก่อน +1

    Box Office of this movie had to of been $950,000,000,000,000

  • @SQL-gf2rb
    @SQL-gf2rb 3 ปีที่แล้ว

    Thanks a lot.

  • @divyasampath9500
    @divyasampath9500 3 ปีที่แล้ว

    Thank you 😊

  • @themoon3463
    @themoon3463 4 ปีที่แล้ว

    Good job

  • @yvonneblache1515
    @yvonneblache1515 2 ปีที่แล้ว

    Hi I need to know if 500000 in revenue 145000 in net income, balance sheet showed net asset 350000, what is the operating ratio and

  • @yxngcas9875
    @yxngcas9875 3 ปีที่แล้ว

    So when you say "sales" that's overall total, right? (Including the expenses etc...) or just the profit?

    • @adrianaencisojure9582
      @adrianaencisojure9582 2 ปีที่แล้ว

      Sale are revenues. Basically is the price of what you are selling x quantity. You dont have to discount expenses

  • @aidengu3161
    @aidengu3161 ปีที่แล้ว

    @4:54 the math here is off, 30%=0.30 so you can't divide it by 100, that will make it 0.003. The NI is 30% by your equation which will end up being $0.3M.

  • @robotmetaverse
    @robotmetaverse 3 ปีที่แล้ว

    What is the software you are using to draw the numbers?

  • @tyandai
    @tyandai ปีที่แล้ว

    Chris Boles ?

  • @abdolzamil9061
    @abdolzamil9061 ปีที่แล้ว

    i still dont understand the different between gross margin and profit margin

  • @brailyramos6892
    @brailyramos6892 ปีที่แล้ว +1

    But something that i still don't understand is the differences of a gross margin and gross profit margin. Let's say it like this (Gross Margin and Profit Margin vs Gross Profit Margin).

    • @muizudeen.oladimeji
      @muizudeen.oladimeji ปีที่แล้ว

      Gross margin is the same as Gross profit margin

    • @chrishassard806
      @chrishassard806 หลายเดือนก่อน +2

      Gross,Operating,Net
      (profit aka income aka earnings)
      Gross Profit = Revenue - COGS.
      Operating Profit = Revenue - Total Operating Expenses.
      Net profit = Revenue - Total Expenses.
      Margin means divide by Sales aka Revenue and times by 100.

  • @angelg6281
    @angelg6281 4 ปีที่แล้ว +2

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  • @tyrellaxe8841
    @tyrellaxe8841 4 ปีที่แล้ว

    Yooh bro how many subjects do you know 🙆🙆🙆🙆

    • @tyrellaxe8841
      @tyrellaxe8841 4 ปีที่แล้ว

      @Grayson Newte the dude is talented ...props 🔥🔥😩😩

  • @avern5357
    @avern5357 4 ปีที่แล้ว

    Hey man keep up🤙

  • @janetteevale9326
    @janetteevale9326 ปีที่แล้ว

    He do business y'all

  • @AnmolTvOfficial
    @AnmolTvOfficial 4 ปีที่แล้ว

    1st

  • @crypto5977
    @crypto5977 3 ปีที่แล้ว +2

    Doesn't make sense at all.

  • @TamImBlessed
    @TamImBlessed 3 ปีที่แล้ว +24

    Your math and physics videos helped me so much during my university years. Now that I’ve graduated and trying to startup my own business, your videos are still here to help. Man I must say you’ve been part of my life journey. Thanks a lot

    • @carloscraigito7384
      @carloscraigito7384 2 ปีที่แล้ว +2

      fr bro, this man has carried me through grade 9 - 12 and college level math, chemistry, and now accounting! Dudes a legend

  • @gregwright4860
    @gregwright4860 2 ปีที่แล้ว +5

    What is the difference between the operating expenses and the total expenses? In the example in this video there are $600M in Operating Expenses, and $640M in total expenses. What kinds of expenses could account for the additional $40M? Is it labor, administrative, depreciation....?

  • @chrishassard806
    @chrishassard806 หลายเดือนก่อน +1

    Gross,Operating,Net
    (profit aka income aka earnings)
    Gross Profit = Revenue - COGS.
    Operating Profit = Revenue - Total Operating Expenses.
    Net profit = Revenue - Total Expenses.
    Margin means divide by Sales aka Revenue and times by 100.

  • @satyamace
    @satyamace 2 ปีที่แล้ว +5

    800M worth of sales with 500M+600M+640M of spends still net profit margin of 20%. What's the magic?

  • @gyeongju4730
    @gyeongju4730 3 ปีที่แล้ว +2

    For operation income I think u for got to subtract cost of goods sold

  • @StayPolishThinkEnglish
    @StayPolishThinkEnglish 4 ปีที่แล้ว +3

    man, this is so helpful. There are so many alternate words. Please use them as well to get it quick. Awesome work! Easy as hell step by step and good to revise! Thanks a lot!

  • @WIPP0303
    @WIPP0303 ปีที่แล้ว +2

    You’re such a blessing for doing this! Thank you king

  • @davidlora7536
    @davidlora7536 2 ปีที่แล้ว +1

    Is COGS part of operating expenses or not? 🤔 edit: if it Is not, then total business expenses = 500 + 600 = 1100 ?

    • @chrishassard806
      @chrishassard806 หลายเดือนก่อน +1

      In that example,
      The COGS was 78.1% responsible for the Total Operating Expenses.
      As a food analogy, if Total Operating Expense was a pizza,
      COGS would be the Pepperoni and be on essentially 75% of the pizza.

  • @LinaSemak
    @LinaSemak ปีที่แล้ว

    Question. How did total expenses end up being $640M? Don't you just add COGS and EBIT?

  • @donaldbernard4227
    @donaldbernard4227 2 ปีที่แล้ว +1

    Excellent

  • @RevansNightmare
    @RevansNightmare ปีที่แล้ว

    Anyone else having trouble with the formulas when using it on a 10K form? I am not following and have always had good grades in math.

  • @jkj1459
    @jkj1459 ปีที่แล้ว

    GM UNDERSTOOD , PART B OM NOT UNDERSTOOD , BECAUSE WE DID NOT CONSIDER COST OF GOODS 500MN , BUT CONSIDERED 600MN AS OE NOW COST OF GOODS ESCAPED , SO THIS IS NOT CLEAR SIR . I AM SORRY .

  • @ambersellers8024
    @ambersellers8024 ปีที่แล้ว +1

    Thank you so much! I was having such a hard time understanding how profit margin works. You made it so much simpler for me. Thank you!

  • @Questary
    @Questary 3 ปีที่แล้ว +1

    This was helpful but school still sucks

  • @sainaambye94
    @sainaambye94 3 ปีที่แล้ว +1

    Tomorrow is my exam am tired of reading so will be spending the night here😁😍

  • @ssalazar817
    @ssalazar817 2 ปีที่แล้ว +1

    Thank you!! Great example.

  • @j.stan-e7869
    @j.stan-e7869 ปีที่แล้ว

    Thank you so much. Subs

  • @MrPabloguida
    @MrPabloguida 3 ปีที่แล้ว +1

    You should say multiplied by 100 and not multipled by 100%. These are two different things. Very good video though.

    • @ineedstuff8286
      @ineedstuff8286 2 ปีที่แล้ว

      100%. ;)... sooooo many people didn’t get that... oh well, still good content ASIDE from simple math

  • @yasminniroumand1321
    @yasminniroumand1321 4 ปีที่แล้ว +15

    This was extremely helpful! thank you for your elaborate explanation.

  • @silshee_254
    @silshee_254 8 หลายเดือนก่อน

    XYZ business has a rate of turnover of 7 times. Average stock is $12,600. Trade discount (i.e. margin allowed) is 33.25 % off all selling prices. Expenses are 66.75% of gross profit. Calculate the following: a. cost of goods sold b. gross profit margin c. turnover d. total expenses e. net profit

  • @janetteevale9326
    @janetteevale9326 ปีที่แล้ว

    Whattt

  • @tenebrae1191
    @tenebrae1191 6 หลายเดือนก่อน

    👏👏

  • @francescotagliavento8081
    @francescotagliavento8081 3 ปีที่แล้ว

    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?

  • @tanquemoran
    @tanquemoran 3 ปีที่แล้ว

    Hi, if i have a GM of 55% Sales for 30,000 Units and unit price is $100. I have an opportunity to sell 10,000 units at $71 (only in this 10,000 units) What is the GM per unit and GM for promotional Opportunity?

  • @jkj1459
    @jkj1459 ปีที่แล้ว

    THANKS . FOR THE VIDEO , GREAT TEACHINGS ON CONCEPTS OF FINANCIAL TERMS , HELPFUL FOR PEOPLE FROM ART AND SCIENCE GROUP AND THOSE WHO NEVER UNDERSTOOD THESESTHINGS .

  • @bencewsafy4813
    @bencewsafy4813 4 ปีที่แล้ว

    wowww,i just realized you are Bucky Robertson,the guy who taught about physics on the other channel

  • @tannarframpton9454
    @tannarframpton9454 3 ปีที่แล้ว

    I would be tickled if my business could hit 40%+ profit margins. :)

  • @noulafrantz8589
    @noulafrantz8589 ปีที่แล้ว

    Now I understand what's a profit margin

  • @marcussatterwhite
    @marcussatterwhite 2 ปีที่แล้ว

    100% means Gross total sales correct?

  • @greghoman3578
    @greghoman3578 3 ปีที่แล้ว

    dude you sound like mark wahlberg

  • @werfghn
    @werfghn ปีที่แล้ว

    Yes! Thank you brother!

  • @behrazasgharzadeh9844
    @behrazasgharzadeh9844 3 ปีที่แล้ว

    Thank you for the clear explanation

  • @dziugas6795
    @dziugas6795 3 ปีที่แล้ว

    i dont understand why it is using sales not revenue. He mentioned that sales are same as revenue but its not actually quite the case can someone explain me?

    • @MsSammieSam
      @MsSammieSam 3 ปีที่แล้ว +3

      sales and revenue can be the same for some businesses. For example, if your business was selling candles and you recognized revenue based on the candles you sold, it would be the same. You sold 100 candles at $5 each would result in both your sales and revenue being $500. However, in a consulting business, sales and revenue typically differ. Sales is the dollar amount of the contract you obtained but revenue is the value of the work you have performed so far. You finalized a contract for services for $10,000 so $10,000 is your sales for the month. However, if you only performed/billed 30% of that contract then revenue would only be for $3,000 and not the full amount of the contract. This example assumes the first scenario.

  • @younggunner6286
    @younggunner6286 4 ปีที่แล้ว

    plz make a playlist for naming reaction only...organic chemistry

  • @Sk8terboy31rs
    @Sk8terboy31rs 4 ปีที่แล้ว

    Interesting

  • @adielcarrillo6565
    @adielcarrillo6565 3 ปีที่แล้ว

    1m

  • @saki7952
    @saki7952 4 ปีที่แล้ว

    You are the best.

  • @abhaychowdhary746
    @abhaychowdhary746 4 ปีที่แล้ว

    Thanked

  • @oni5909
    @oni5909 4 ปีที่แล้ว +2

    How the hell did you get so smart man you deserve all the views

  • @TheButtpod
    @TheButtpod 4 ปีที่แล้ว

    QUESTION (...cuz I'm confused). If you want to calculate PM as a percentage (like you're calculating in the video) then I don't think it's NI/Sales x 100%. Shouldn't it be NI/Sales x 100 (not 100%) which gives you the PM as percentage? Or am I wrong somewhere? Thanks for the great video.

    • @danishabbasi_
      @danishabbasi_ 3 ปีที่แล้ว

      You are right... I think he had a typo error

    • @ineedstuff8286
      @ineedstuff8286 2 ปีที่แล้ว +1

      i was surprised how many people did not catch the % issues... i dont know how this guy didnt notice. It is not a ttypo, becuase he tells you to divide by 100 at times when he shouldn’t have. Oh well, evetything else was helpful