Profit Margin - BUS–A 201, Indiana University--Bloomington

in Topic 2 (Video 12 of 12)

3 minutes

Profit Margin is crucial for businesses to optimize. Let's take a look at what it actually is.

This Video Mentioned Some Formulas

Revenues

– Expenses

Net Income

Profit Margin = Net Income / Sales Revenue

Sales

– COGS

Gross Profit

Gross Profit Margin = Gross Profit / Sales Revenue

Gross Profit Ratio is the same as Gross Profit Margin

1	Current Assets	9:57
2	Non-Current Assets	10:25
3	Current Liabilities	6:24
4	Non-Current Liabilites	2:00
5	Contributed Capital	5:10
6	The Classified Balance Sheet	4:48
7	The Multistep Income Statement	12:44
8	Retained Earnings vs Shareholder's Equity	6:41
9	Ratios: Working Capital	2:29
10	Ratios: Current Ratio	4:00
11	Gross Profit vs Net Profit	6:15
12	Profit Margin You are here.	3:22

	Click Here to View All Topic 2 Problems at Once	View
1	Current Assets	Easy
2	Effect on the Current Ratio	Easy
3	Retained Earnings	Easy
4	Solving for Missing Amounts	Moderate
5	Account Classifications	Hard
6	Calculating Operating Income	Hard