12:20 - How exactly do you calculate "Cash Gross Profit Margin"? Gross Profit Margin can be calculated using (Revenue - COGS)/Revenue. So Cash Gross Profit Margin is (Cash and cash equivalents)/Revenue? Or am I wrong?
A bit misleading - not a standard IFRS nor even GAAP term. Never heard of "cash gross profit" margin. Adding back depreciation expense is a bit silly. So many variables as to how to calc dep. Depends. Keep it out, manage it separately.
Excellent, excellent, excellent talk.
12:20 - How exactly do you calculate "Cash Gross Profit Margin"?
Gross Profit Margin can be calculated using (Revenue - COGS)/Revenue.
So Cash Gross Profit Margin is (Cash and cash equivalents)/Revenue? Or am I wrong?
Cash gross profit margin: (Revenue - COGS + Depreciation) / Revenue
A bit misleading - not a standard IFRS nor even GAAP term. Never heard of "cash gross profit" margin. Adding back depreciation expense is a bit silly. So many variables as to how to calc dep. Depends.
Keep it out, manage it separately.
I wonder if the company is still in HK
The advice from his dad is actually from Will Rogers .Click.