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| Name | How to Calculate the Net Profit Margin |
| Video Uploader | Video From Edspira |
| Upload Date | This Video Uploaded At 15-10-2017 18:17:47 |
| Video Discription | This video shows how to calculate and interpret a company's Net Profit Margin. The Net Profit Margin, sometimes referred to as simply the Profit Margin, is calculated as follows: Profit Margin = Net Income / Net Sales Thus, a company with a Net Income of $3,000 and Net Sales of $100,000 would have a Profit Margin of 0.03, which is then multiplied by 100 and expressed as a percentage to yield a Profit Margin of 3%. If the company's Profit Margin is 3%, this means the company generates 3 cents of profit for every dollar in sales. What is a good or bad Profit Margin depends on the industry. Grocery stores tend to have a lower Profit Margin but compensate for this with a very high sales volume (they make very little profit on each sales, but they make a very large number of sales).— Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • MANY MORE FREE PDF GUIDES AND SPREADSHEETS * http://eepurl.com/dIaa5z — SUPPORT EDSPIRA ON PATREON *https://www.patreon.com/prof_mclaughlin — GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/ * https://michaelmclaughlin.com [Hx4vVoN4uLs] |
| Category | Education |
| Tags | net profit margin | profit margin | profit margin ratio | ratio | financial accounting | accounting | corporate finance | finance |
