Revenue vs. Gross Income/Profit/Earnings vs. Net Income/Profit/Earnings (Bottom Line) in One Minute

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  • Опубліковано 5 жов 2024

КОМЕНТАРІ • 118

  • @OneMinuteEconomics
    @OneMinuteEconomics  Рік тому

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  • @omniarchangel5227
    @omniarchangel5227 4 роки тому +49

    Tom might wanna get a new job

  • @TysonMichael77
    @TysonMichael77 2 місяці тому +2

    Interesting to see how fast your net income can get so low when u have all those expenses. Goes to show that gross income isn’t everything once you see all the things u have to pay after. So it makes me realize that I wanna have other streams of income within my business and life
    Thank you for sharing ❤

  • @NerissaThak
    @NerissaThak 3 роки тому +28

    Quick, to the point with no 'waffle'. Thank you for this simple and easy-to-understand video. I have subscribed to your channel based on this awesome content :D

    • @OneMinuteEconomics
      @OneMinuteEconomics  3 роки тому

      Thank you so much for the kind words, welcome to the community! :)

    • @brailyramos6892
      @brailyramos6892 Рік тому

      @@OneMinuteEconomics But something that i still don't understand is the differences of a gross margin and gross profit margin. Let's say it like this (Gross Margin and Profit Margin vs Gross Profit Margin).

  • @SonSantana
    @SonSantana 2 роки тому +6

    This is the type of content that earns a like instantly. Not wasting viewers time asking for likes and subscriptions. Good content does that on its own. Thanks!

    • @OneMinuteEconomics
      @OneMinuteEconomics  2 роки тому +1

      Here to serve. Thanks a lot for the kind words :)

    • @SonSantana
      @SonSantana 2 роки тому

      @@OneMinuteEconomics 🙌🏾

  • @CL0UD_9Hero
    @CL0UD_9Hero 3 роки тому +9

    Thanks a lot man, I'm currently doing a business plan for an activity lesson and this surely help me understand about what should I do in my financial statement

    • @OneMinuteEconomics
      @OneMinuteEconomics  3 роки тому

      Awesome, glad to hear that and good luck with the project! :)

  • @OneMinuteEconomics
    @OneMinuteEconomics  Рік тому +2

    If you liked this video, I think you'll love my personal finance book (Wealth Management 2.0) that has been written specifically for today's ultra-complex investment landscape and is available over at:
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  • @karljo8064
    @karljo8064 5 років тому +10

    I like your animations; The characters are so cute.

    • @OneMinuteEconomics
      @OneMinuteEconomics  5 років тому +1

      Really happy you feel that way, I do my best to keep the video and overall "feel" of the channel as family-friendly (and just friendly in general) as possible :)

  • @omarcrazylovesongz
    @omarcrazylovesongz Рік тому

    Wow, I'm a spanish student and I have problems to understand the diference, but with your video i finally get it and only in 1 minute, you are exceptional.

  • @amiraslanbakhshili5420
    @amiraslanbakhshili5420 3 роки тому +3

    Thank you! Great presentation, simple and clean explanation. Loved it :)

    • @OneMinuteEconomics
      @OneMinuteEconomics  3 роки тому +1

      Music to my ears haha, thanks a ton for the kind words :)

  • @feralferret
    @feralferret Рік тому +2

    Still confused. If labour is included with Gross Profit, why isn't taxes and rent etc. also? Surely rent is a direct cost and should be included when calculating Gross profit? What differentiates labour costs from being included in net profit instead?

    • @ruhaantherockstar2678
      @ruhaantherockstar2678 7 днів тому

      Bro see labour and material costs are variable wheras rent is fixed and tax is applied on the gross profit

  • @mageku1598
    @mageku1598 Рік тому +1

    Amazing explanation thanks so much u will really help with my exams InshaAllah ❤

  • @williampennjr.4448
    @williampennjr.4448 3 роки тому +1

    Your Income is all money that came to you during a particular time period, weather you earned it or not.
    Revenue is all income you received during the same time period regardless of when it was due you.
    Profit is income minus your operating expenses, interest and debt for that time period regardless of when you paid it.
    Net Profit is profit minus taxes.
    In other words, Income, revenue and profit are not the same thing. If I received 50k cash in 2018 that is my income but I may have been paid money that was due me from a prior year, or I may have also been overpaid by mistake, or I didn't pay enough taxes, or I took out a loan. What is left is my revenue.

  • @samsschool3639
    @samsschool3639 3 роки тому +1

    THANK YOU, if all explanations where like this id be a millionaire

    • @OneMinuteEconomics
      @OneMinuteEconomics  3 роки тому

      You're more than welcome Sam, thank YOU for taking the time to say something nice :)

  • @moviescarab
    @moviescarab Рік тому

    Simple and straight to the point.
    Awesome video

  • @AlbertoRivas13
    @AlbertoRivas13 3 роки тому +2

    Very simple explanation, thanks a lot :)

  • @sazr5795
    @sazr5795 Рік тому +1

    Brilliant video - thank you. Would your own salary be deducted from the net or gross profit?

  • @aaronjolley663
    @aaronjolley663 4 роки тому +5

    So he spent 40,000 dollars on materials but only received 15,000 after all that, that doesn’t sound right to me.

    • @just_my_point
      @just_my_point 2 роки тому +1

      That 40,000 is kept aside and beside that 15,000 was his profit. Re-watch the video

  • @lynette4975
    @lynette4975 Рік тому

    😭😭😭😭
    Key chain cost $30
    I sold 20 pcs worth of key. So $600 is my revenue?
    $600
    -$220 (bought KC from supplier for $11)
    = $380 - Income?
    $380
    - $20 (Packaging Expenses)
    - $15 (Printing Expenses)
    - $10 (Photopaper)
    = $335 - profit?
    (This is what I learned in school, or not)
    220 (Cost KC)
    +20
    +10
    +15
    Total Cost: $265
    20 pcs (sold) x $30 (selling price)
    $600 (income/revenue)
    $600 - $265 = $335 (profit)
    Teacher said that income and revenue are the same, that is why I put it there. So far, the profit is the only thing I understand.
    I'm confused.

    • @OneMinuteEconomics
      @OneMinuteEconomics  Рік тому

      600 is your revenue and after subtracting the costs, you are left with a $335 GROSS profit. From that, you'll subtract expenses such as rent if applicable (so things other than direct costs) and taxes, which will leave you with your NET profit (also called net income or net earnings) :)

  • @leochan6239
    @leochan6239 3 роки тому +1

    clear and easy to understand, thank you! Subbed!

  • @lienphan6946
    @lienphan6946 4 роки тому +2

    thanks alot for this useful tip. Great work!

  • @ckk2136
    @ckk2136 3 роки тому +1

    Thanks a lot, a short and clear video!

  • @OneMinuteEconomics
    @OneMinuteEconomics  4 роки тому

    One Minute Economics needs your help! Please give me a minute (heh) of your time by watching the following video if you find the channel useful, literally anyone can help (either financially or by spreading the word about my work): ua-cam.com/video/io04ckq1X1M/v-deo.html

  • @lindasaechao3864
    @lindasaechao3864 2 роки тому +1

    Your content is so touching

  • @randomjose
    @randomjose 4 роки тому +1

    Great explanation thanks. And our system is builti to pay and pay and overpay taxes and from those 15,000 you have to pay more taxes from whatever you buy....

  • @redone729
    @redone729 3 роки тому +1

    How can you have employees in a one man business?

    • @parshajoytis
      @parshajoytis Рік тому

      In one-man-business we can't get other owners in a business,you only a owner of your business but you can get employee's. In short one man means only one owner. But we can include employee's in business to reduce our work. I hope we can understand my account.

  • @fyodorshively
    @fyodorshively 2 місяці тому

    Hey, important stuff to know about getting your money back!

  • @dominicnuna8375
    @dominicnuna8375 2 роки тому

    Simple yet very clear .. thank you

    • @OneMinuteEconomics
      @OneMinuteEconomics  2 роки тому +1

      Glad you liked the video Dominic, appreciate the vote of confidence :)

  • @Sara-uu4wh
    @Sara-uu4wh 3 роки тому +1

    thank youu! the only video that made sense!

    • @OneMinuteEconomics
      @OneMinuteEconomics  3 роки тому

      Hearing (well, reading) stuff like this always makes my day, thanks a ton :)

  • @IWantMulan
    @IWantMulan Рік тому

    I’m confused, I thought that rent was apart of the COGS and to be deducted before the gross income because it plays a part in the production of the goods you are producing. COGS is anything that involves the making of your product and so wouldn’t rent be deducted with the COGS to get the gross income? Please make it make sense because I am confused!

  • @PCube3
    @PCube3 3 роки тому

    excellent explanation. many thanks for making this video.

    • @OneMinuteEconomics
      @OneMinuteEconomics  3 роки тому

      Thank you Praveen, glad you found the explanation useful :)

  • @lordzeno6454
    @lordzeno6454 2 роки тому

    video anda sangat bagus dan mempunyai mesej yang luas terima kasih

  • @dujonlewis2225
    @dujonlewis2225 Рік тому

    Simple and easy 👍🏾

  • @mehranchoudhury669
    @mehranchoudhury669 3 роки тому +1

    This man had me on 10000 swords

  • @melikevelizade9208
    @melikevelizade9208 Рік тому

    Perfect explain, thanks 👍

  • @brailyramos6892
    @brailyramos6892 Рік тому

    But something that i still don't understand is the differences of a gross margin and gross profit margin. Let's say it like this (Gross Margin and Profit Margin vs Gross Profit Margin).

  • @VannyPinkLopez
    @VannyPinkLopez 5 місяців тому

    Thank you, Sir.

  • @zenastronomy
    @zenastronomy Рік тому

    why are expenses not part of the direct costs?
    taxes I understand. ask they depend on profits. but rent?

  • @hoaithungo7137
    @hoaithungo7137 2 роки тому

    so touching for an excellent video

  • @johnconnor9787
    @johnconnor9787 5 років тому +1

    Great!!!!!!!!!!!!!!!!!! LOts of terms in a short video

    • @OneMinuteEconomics
      @OneMinuteEconomics  5 років тому +1

      Thanks a lot, really happy you find it useful and information-dense, it's quite difficult to cover a lot of ground in a minute or so and also do it in a way that leaves little room for interpretation as well as keeps things easy to follow/understand :)

  • @justsomeguywhoneverdies9210

    So can you use "salary" in this or does his work just not have "salary"

  • @HyperionBadger
    @HyperionBadger Рік тому

    Hang on. If you are making deductions, then it shouldn't it be:
    Gross Income - Expenses = Taxable Income
    Taxable Income - (Tax percentage * Taxable Income) = Net Profit
    ----------
    In other words, if we were to apply this to this video from the start:
    REVENUE = 100,000
    COGS = 40,000
    EXPENSES = 25,000
    TAX% = 30% or .3 (includes FICA tax, )
    1.
    REVENUE - COGS = GROSS INCOME
    100,000 - 40,000 = 60,000
    2.
    GROSS INCOME - EXPENSES = TAXABLE INCOME
    60,000 - 25,000 = 35,000
    3.
    TAXABLE INCOME - (TAXABLE INCOME * TAX%) = NET PROFIT
    35,000 - (35,000 * .3)
    35,000 - 10,500 = 24,500
    Am I correct? Because I am trying to account for how much my take home money would be when accounting for taxes for a single owner LLC.

    • @HyperionBadger
      @HyperionBadger Рік тому

      @migmigmigmig3776 I'm not talking about whether or not this should be taught in school, I'm talking about whether or not the formula is sound in the context I described it as.

  • @rashedislam1172
    @rashedislam1172 Рік тому

    Superb tutorial

  • @SacerKtracho
    @SacerKtracho Рік тому

    Plain and simple.

  • @H2Ojellyfish
    @H2Ojellyfish 3 роки тому

    You didn’t explain the difference between profit, earnings, and net income

  • @masterboxxx
    @masterboxxx 4 роки тому

    net profit not same net income , if the company has other income they will calculate net profit that are you mentioned in 1:26 plus + other income , and that would be net income ,,, and gross profit also not same net profit , because gross profit comes after cut direct expenses ,, then you have to cut other expenses like for commission & adverting .. etc ( indirect expenses ) then you call it net profit ( from your main business selling swords) ,,, after that if you have other income lets say revenue from realeste so you will add it also and you will call it other income (this not come from your main business) , then you will sum all income and you will call them all net income ( the income you can use it ) ... this maybe confusing but its important to know it if you want to read any company income statement .

  • @sri9982
    @sri9982 5 років тому

    I observed that you have reduced the speed of the video (by speaking slowly), which is good. However, I think that your positioning is one-minute videos, and that's cool. Anyway, I do not want to confuse you. I appreciate the great work you are doing. 👍🏻👍🏻👍🏻

    • @OneMinuteEconomics
      @OneMinuteEconomics  5 років тому +1

      Thanks a lot, it's pretty difficult to find the right balance between speed and getting the optimal amount of information across. Format-wise, the one minute approach enables me to make the videos as long as 1:59 (ONE MINUTE and fifty-nine seconds, heh), which I believe is more than decent. Frankly, in the overwhelming majority of cases when it comes to the 200+ videos I've published thus far, I didn't feel the need to get too close to 1:59. If necessary, though, I don't mind doing it.

  • @surveytestmoney2550
    @surveytestmoney2550 3 роки тому

    Thank you for a very quick & easy explanation!

  • @rozyrk4262
    @rozyrk4262 2 роки тому

    Character In the video It's great, I like it a lot $$

  • @abhirampadavala1975
    @abhirampadavala1975 2 роки тому

    So bottom line is net revenue??

  • @pratimanadkarni9559
    @pratimanadkarni9559 2 роки тому

    the video image is too poor, you need to fix it more

  • @smartcent360
    @smartcent360 2 роки тому

    How did it become $1500 if 2500-2000 is $5000

    • @OneMinuteEconomics
      @OneMinuteEconomics  2 роки тому

      We land at the $15,000 value after subtracting the $25,000 in expenses and $20,000 in taxes from the $60,000 gross income. In other words $60,000 - $25,000 - $20,000 = $15,000

  • @Thmyris
    @Thmyris 5 років тому

    x1.5 is the normal speed now?

    • @OneMinuteEconomics
      @OneMinuteEconomics  5 років тому

      I do my best to find the right balance between including as much information in the video as I deem necessary and not going overboard speed-wise. When it comes to this particular video, do you think I should have slowed it down a notch?

  • @nickvasilchenko3651
    @nickvasilchenko3651 4 роки тому

    Everyone watching this... you also need to deduct overhead expenses, just heads up... that wasn’t mentioned here

    • @surveytestmoney2550
      @surveytestmoney2550 3 роки тому

      Depending on the type of business & structure you have.. *ex:* running a business out of an extra/spare bedroom or garage vs a rented space

  • @postelb8046
    @postelb8046 Рік тому

    it'd be more profitable if swords are not wooden.

  • @jay_wuks
    @jay_wuks 2 роки тому

    Seems like a lot of money’s taken out that Revenue lol

    • @OneMinuteEconomics
      @OneMinuteEconomics  2 роки тому

      As it should, IMO: ua-cam.com/video/nuZI_qBHyaY/v-deo.html

  • @s.jackson858
    @s.jackson858 Рік тому

    Boom!

  • @sukhvirk.b5933
    @sukhvirk.b5933 5 років тому +1

    The way is best but not detail plz if u can in'st of 1 mim

    • @OneMinuteEconomics
      @OneMinuteEconomics  5 років тому +1

      Thanks for sharing your opinion, is there anything in particular you would have liked me to include? Perhaps I can incorporate that in a future video :)

  • @raksaheng
    @raksaheng 3 роки тому

    thank youuu

    • @OneMinuteEconomics
      @OneMinuteEconomics  3 роки тому

      Thank YOU for taking the time to express your gratitude :)

  • @uzairqaziuzair4586
    @uzairqaziuzair4586 2 роки тому

    The image is too offensive

  • @andrecamacho7660
    @andrecamacho7660 Рік тому

    perfect

  • @desiremanceraslopez1579
    @desiremanceraslopez1579 2 роки тому

    Saya tidak percaya ia boleh menjadi sebaik ini

  • @alohawg
    @alohawg 4 роки тому +1

    Tom is screwed.

  • @7motion985
    @7motion985 Рік тому

    That’s swords business it’s a scam 😂

    • @OneMinuteEconomics
      @OneMinuteEconomics  Рік тому

      Not yet... wait for them to sell SWORD crypto tokens and then we'll talk :D

  • @Mabeylater293
    @Mabeylater293 Рік тому

    Then he gets smart and votes Republican.

  • @beboselections
    @beboselections 10 місяців тому

    @beboselections

  • @phuonganhluong955
    @phuonganhluong955 2 роки тому

    so touching for an excellent video

  • @phucpham7216
    @phucpham7216 2 роки тому

    Character In the video It's great, I like it a lot $$

  • @vietdotien7002
    @vietdotien7002 2 роки тому

    the video image is too poor, you need to fix it more

    • @OneMinuteEconomics
      @OneMinuteEconomics  2 роки тому

      Thanks for the feedback, in which instances have you identified image quality issues? Which scenes, in other words?

  • @huonghuong2685
    @huonghuong2685 2 роки тому

    Character In the video It's great, I like it a lot $$

  • @thangbui7130
    @thangbui7130 3 роки тому

    Character In the video It's great, I like it a lot $$