How do you calculate your net profit margin?

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  • @spinelessdevil
    @spinelessdevil Рік тому +29

    Gotta spend money to make money

    • @TwoTeachers
      @TwoTeachers  Рік тому +4

      Amen 🙏🏻

    • @noel7777noel
      @noel7777noel 11 місяців тому +5

      Taking out a loan for a pizza oven is very different than taking out a loan for the margins from a pizza oven.
      "Money makes money" is taking out a second loan on the margins of the pizza oven. The first loan is for the pizza oven.
      "Money makes money" is not known for a pizza oven loan.
      Normal supply and demand doesn't have profits avaliable to investors in the math equation.

  • @user-qc8pu3qn5x
    @user-qc8pu3qn5x 8 днів тому +1

    Thankyou sir

  • @fashion_of_design
    @fashion_of_design 9 місяців тому +5

    Thanks! Helped a lot bro

    • @TwoTeachers
      @TwoTeachers  9 місяців тому

      Cheers pal. Glad it helped 👍

  • @aniswando9157
    @aniswando9157 5 годин тому

    Wow, excellent, very clear

  • @asfi.
    @asfi. Місяць тому +3

    19% tax on 35000
    its means your profit 29000

  • @vanessagalleguillos-zv5kl
    @vanessagalleguillos-zv5kl 7 місяців тому +2

    Thank you so much for this

    • @TwoTeachers
      @TwoTeachers  7 місяців тому

      No problem, glad we could help 😁

  • @user-hc4zw4fe1k
    @user-hc4zw4fe1k 6 місяців тому +1

    It's amazing here I love it

  • @louietoltolvlog9699
    @louietoltolvlog9699 3 місяці тому +2

    Excel will calculate automatically

    • @TwoTeachers
      @TwoTeachers  3 місяці тому +1

      Good point but it is useful to understand what it is calculating 🤷‍♂️

  • @DailyWord3832
    @DailyWord3832 3 місяці тому +1

    Also we can raise PM by either increase revenue or decrease expenses.

  • @GOAL-ENTPRENUER-in5dh
    @GOAL-ENTPRENUER-in5dh 8 місяців тому +2

    One doubt to find net profit we minus all expenses but what about operating profit 🤔🤔🤔i am confused 😕

    • @TwoTeachers
      @TwoTeachers  8 місяців тому

      That's a great question, "Operating profit is the amount of the gross profit minus operational costs.Net profit is the total amount left over after the business has accounted for all deductions, including interest and taxes. Gross and net profit are standard inclusions on an income statement, but businesses commonly leave out their operating profit." Check out this link for more information, hope this helps. www.indeed.com/career-advice/career-development/gross-vs-net-vs-operating-profit#:~:text=Operating%20profit%20is%20the%20amount,deductions%2C%20including%20interest%20and%20taxes.

    • @GOAL-ENTPRENUER-in5dh
      @GOAL-ENTPRENUER-in5dh 8 місяців тому

      @@TwoTeachers ok thanks Love from India 🇮🇳🇮🇳🇮🇳🇮🇳🇮🇳🇮🇳

  • @jkj1459
    @jkj1459 Рік тому +8

    NET-PROFIT MARGIN

  • @emperor_napoleon
    @emperor_napoleon 9 місяців тому +1

    Where did you get the net profit? And also the sales

    • @TwoTeachers
      @TwoTeachers  9 місяців тому +1

      You get them from an income statement created by the business 😁

    • @emperor_napoleon
      @emperor_napoleon 9 місяців тому +1

      @@TwoTeachers ohh okay but is the net profit from (gross profit - total expenses)?

  • @noulafrantz8589
    @noulafrantz8589 Рік тому +3

    Is the net profit is that go to the company or the business owner

    • @TwoTeachers
      @TwoTeachers  Рік тому +4

      Great question. It can be paid as a dividend to the owners of the company or the business can reinvest it to help the company grow.

    • @noel7777noel
      @noel7777noel 11 місяців тому +1

      ​​@@TwoTeachersin normal supply and demand math chart, the margins go to reinvest the "profits" (AKA margins) to fix the infrastructure to fix the supply shortages.
      Veblin goods supply and demand math chart the "profits" are available to the owners.
      Walt Disney didn't have the right to ride of in the sunset with Snow White's profits. He used those profits to fund Walt Disney World. Than the profits from Walt Disney World to build Space Mountain.

  • @mrkurleygunna
    @mrkurleygunna 5 місяців тому

    So lets say I made $400 from a sell for the month and the cost of good was $318 do I subtract the cost of goods then subtract the taxes from the $82 left from my profit or subtract the taxes I pay from the $400?

    • @TwoTeachers
      @TwoTeachers  5 місяців тому

      you subtract the cost of goods sold. Then any expenses from the $82 you have left. Then you pay taxes on the net profit 👍

  • @gunfungaming3235
    @gunfungaming3235 7 місяців тому +1

    HOW TO CALCULATE REVENUE FROM OPERATION WHEN TOTAL REVENUE AND OPERATING EXPENSES ARE GIVEN

    • @gunfungaming3235
      @gunfungaming3235 7 місяців тому

      SHOULD WE IGNORE OPERATING EXP AND CONSIDER TOTAL SALES

    • @TwoTeachers
      @TwoTeachers  6 місяців тому +1

      To calculate your revenue you don't need to know your expenses, you only include expenses in your calculation if you are trying to calculate profit. Hope this helps.

  • @oussamaaa6821
    @oussamaaa6821 20 днів тому

    Profit is 112326$
    Trades 418
    I want calculate capital how?

  • @Omamuyovwi-Bright
    @Omamuyovwi-Bright 15 днів тому

    Where did 35,000 come from ?

  • @venkatesh3484
    @venkatesh3484 6 місяців тому +1

    Then how to find net profit before tax

    • @TwoTeachers
      @TwoTeachers  6 місяців тому

      it's operating profit - interest (and exceptional costs) = net profit before tax

  • @yarcencarter1943
    @yarcencarter1943 17 днів тому

    This is Chinese to me 😂😂😂 oh my do I have my work cut out for me

  • @deaddrink9150
    @deaddrink9150 7 місяців тому +1

    What is after net profit ?

    • @TwoTeachers
      @TwoTeachers  6 місяців тому

      Great question, it's net profit after tax is taken into account.

  • @user-cy8xm4ip6g
    @user-cy8xm4ip6g 4 місяці тому

    Which kind of sales gives you 3x profit..
    I mean cost of goods = 25k.
    Gross profit = 75K..
    What u are selling?? Give example

    • @TwoTeachers
      @TwoTeachers  3 місяці тому

      This video is called an example and it gives you simple hypothetical figures that are easy to use so that you can understand the calculation. I am not selling anything in the video as it is a fictional example 👍

  • @daberechukwujudeokwueze9675
    @daberechukwujudeokwueze9675 2 місяці тому +1

    song name pls

    • @TwoTeachers
      @TwoTeachers  2 місяці тому

      Great question but we don’t know sorry

  • @user-hc4zw4fe1k
    @user-hc4zw4fe1k 6 місяців тому +1

    Can bring a question here

    • @TwoTeachers
      @TwoTeachers  6 місяців тому

      Yes of course you can...

  • @sammajumder8521
    @sammajumder8521 Рік тому +1

    If net profit not given then

    • @TwoTeachers
      @TwoTeachers  Рік тому +2

      If you have gross profit and expenses then you could calculate the net profit by deducting the expenses from gross profit. Otherwise if you don’t have net profit then you can’t calculate net profit margin.

  • @rehaanhussainking7208
    @rehaanhussainking7208 5 місяців тому

    How to find let loss?

    • @TwoTeachers
      @TwoTeachers  5 місяців тому

      Your net loss will show at the bottom of the statement once you have deducted your expenses. It will be a negative figure if you are making a loss.

  • @alexi3473
    @alexi3473 6 місяців тому

    That's not net profit, that's gross. Net is after tax.

    • @TwoTeachers
      @TwoTeachers  6 місяців тому +1

      On a statement of profit and loss, a business will state both net profit followed by net profit after tax.

  • @Sivanmessi
    @Sivanmessi 10 місяців тому +1

    Cross profit mean?

    • @TwoTeachers
      @TwoTeachers  10 місяців тому +1

      Check out this video, it will explain gross profit to you Net Profit and Gross Profit | Formulas, Margin Calculations and How to Interpret Figures Explained
      ua-cam.com/video/DM7TqljUues/v-deo.html

    • @GOAL-ENTPRENUER-in5dh
      @GOAL-ENTPRENUER-in5dh 8 місяців тому

      Gross*

  • @georgekamel4569
    @georgekamel4569 3 місяці тому

    Silly,just put cost of goods under the Expenses dahhhh

    • @TwoTeachers
      @TwoTeachers  3 місяці тому

      Great idea, but that would make the gross profit figure incorrect.

  • @Alex-eh9bm
    @Alex-eh9bm Рік тому

    Net sales or gross sales

    • @TwoTeachers
      @TwoTeachers  Рік тому

      Gross sales

    • @RoriRebel
      @RoriRebel Рік тому +1

      Gross sales obviously because below he has his expenses

  • @dwaramaswani2608
    @dwaramaswani2608 2 місяці тому

    Wrongly informed about net profit

  • @mahekfaldu
    @mahekfaldu 5 місяців тому

    Stupidity at peak, where is purchase???😂

    • @TwoTeachers
      @TwoTeachers  5 місяців тому

      Cost of goods sold = the starting inventory + purchases - ending inventory.

  • @techstudy22
    @techstudy22 9 місяців тому

    Madarindia

  • @simitae2301
    @simitae2301 5 місяців тому

    How to calculate a percentage of comparative statement of profit and loss It's really hard for me to find percentage

    • @TwoTeachers
      @TwoTeachers  5 місяців тому

      Determine the Initial Value (Old Value): This is the starting value of the item you're comparing. For example, if you're comparing the profit from last year, this would be the profit from last year.
      Determine the Final Value (New Value): This is the ending value of the item you're comparing. Using the same example, if you're comparing the profit from last year to this year, this would be the profit from this year.
      Calculate the Difference (Change): Subtract the initial value from the final value. This gives you the absolute change in value.
      Change = Final Value - Initial Value
      Calculate the Percentage Change: Divide the absolute change by the initial value and multiply by 100 to get the percentage change.
      Percentage Change = (Change / Initial Value) * 100
      Let's illustrate this with an example:
      Suppose the profit last year (Initial Value) was $50,000 and the profit this year (Final Value) is $70,000.
      Initial Value (Old Value): $50,000
      Final Value (New Value): $70,000
      Change = $70,000 - $50,000 = $20,000
      Percentage Change = ($20,000 / $50,000) * 100 = 40%
      So, the profit increased by 40% compared to last year.
      If the final value is less than the initial value, the percentage change will be negative, indicating a decrease in profit.

  • @laydialayjos8960
    @laydialayjos8960 5 місяців тому

    Pura pendejada...