Five types of profits in Profit & Loss Statement

Five types of profits in Profit & Loss Statement | CA AVI
Join us for a deep dive into the world of unit economics, where we go beyond the EBITDA fascination in Shark Tank and explore the five key profits outlined in the Profit & Loss Statement.
In this enlightening video, we break down each profit metric, starting with the gross profit. Using real-life examples, we illustrate how gross profit differs from net profit and why understanding this distinction is crucial for business success.
Next, we unravel the concept of contribution margin, shedding light on its significance in assessing business profitability. Learn how to calculate contribution margin and its role in determining the true profitability of your ventures.
But we don't stop there. Delve into the realm of EBITDA - Earnings before Interest, Tax, Depreciation, and Amortization. Understand why investors closely scrutinize this figure and how it reflects your business's operational efficiency.
Discover the importance of PBT (profit before tax) and PAT (profit after tax), and unravel the complexities of depreciation and amortization in separate videos to come.
Whether you're a seasoned entrepreneur or new to the business world, this video offers valuable insights into understanding and leveraging various profit metrics to drive your business forward.
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