GROSS PROFIT MARGIN: a Simple Explanation

In this video you'll learn what 'Gross Profit Margin' is and I'll show how to calculate it with examples. This is the start of a new series covering Financial Ratios.

⏱️TIMESTAMPS
00:00 - Intro
00:13 - Gross Profit Margin Definition
01:02 - What is Profit?
01:22 - What is Profit Margin?
02:26 - What is Gross Profit?
03:13 - What is Gross Profit Margin?
04:00 - Example: Gross Profit Margin
04:45 - Comparison: Year on Year
05:30 - Comparison: Different Businesses
06:26 - What Decreases Gross Profit Margin?
07:03 - What Increases Gross Profit Margin?

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#accounting #accountingstuff #financialratios

[AccountingStuff]

Hey there! which Financial Ratios would you like me to cover next?

⏱️TIMESTAMPS
00:00 - Intro
00:13 - Gross Profit Margin Definition
01:02 - What is Profit?
01:22 - What is Profit Margin?
02:26 - What is Gross Profit?
03:13 - What is Gross Profit Margin?
04:00 - Example: Gross Profit Margin
04:45 - Comparison: Year on Year
05:30 - Comparison: Different Businesses
06:26 - What Decreases Gross Profit Margin?
07:03 - What Increases Gross Profit Margin?

[cakeburgers]

Thank you so much for your videos. I am a new business owner with zero accounting experience. Watching your videos has helped me to understand how to understand the different financial statements. I never get bored watching your videos and I watch them over and over again. You are super easy to watch and understand 🌟🌟🌟🌟🌟for you! Thank you James.
- Evette

[celestialcelesta]

Thank you so much, James!! Glad you're back 😀

[CKBREEZY]

Your shows are the best on YouTube. Well explained.

[gabrielbonifacio]

This has been very helpful to me especially when I review pnl when I was the store manager of a restaurant.

[Art_by_Zakiya]

I'm doing the CIA now and there are so many accounting terminologies which I don't understand. But now I do, thanks to you.
Really really helpful

[MandeepKaur-isnb]

Please make Next Video on the topics -
Solvency ratio
Liquidity ratio
Activity ratio
Profitability ratio.
And please ans my ques that why spare tools or loose tools are not considered part of current assets?

[daniellevaneeden]

I just had a bit of a nostalgic moment when i saw the upload notification. Sadly, our journey has come to an end as i dropped accounting 2 months ago after my mock exams. Thanks for all the help over the years💞🌟🌻

[dijindas]

Great work bro.
The video is very useful, crisp and clear.

[hrishikeshbadiyar]

Hey, just a humble suggestion I think it would be awesome it you also made some economics video

[Mykhailo_Vasylenko]

Wow man I didn’t know an Accountancy can be so interesting

[Middlenamejane]

Just in time! GPM, OPM, and NPN hadn't been apart of your channel last time I was here. I can't tell you how happy I am that I double checked :D :') :') :')

[Daniel-ojxe]

You are my only utuber that i hit your notifications bell. Always waiting your amazing vd 😍

[samm]

Always waiting for you to upload James!

[sarahidehenre]

Found this piece very helpful.
Thanks a bunch

[tomstanely]

Another great video by the best YouTube channel on common accounting concepts :)

Sometimes I learn more about concepts I think I already know when I watch your videos.

[jessabelle.]

Thanks for making these video so much clearer and better to understand and remember the content! ;)

[edenjaftha]

Awesome video!I wanted to know if you could perhaps do one video of the going concern concept, I am having some difficulties trying to understand it. Thanks in advance 💪

[tanmay]

Yes you're back !! 😀
Please make videos on earnings ratios.

[nepaluptv]

FEL Corporation spent $1, 000 on the cost of goods sold during a fiscal period. They also paid $300 in marketing and advertising fees, $15 on interest fees related to loans and $1, 000 in administrative fees and wages. FEL Corporation earned a total of $4, 000 for the same period of time through sales.Find gross profit.