Profitability ratios look at the returns earned by a business both in terms of its trading activities (sales revenue) and also how much is invested in earning those returns (capital employed). This revision video introduces the four main profitability ratios.
Views: 86511 tutor2u
Profitability Ratio Analysis: Financial Ratio Analysis Explained Support AccoFina's Patreon if you are a Fan or Believer in my work, https://patreon.com/accofina Time Markers: 1) The Profit Margin 1:17 2) The Gross Profit Margin 5:47 3) The Return on Assets 14:28 4) The Return on Equity 21:47 5) Different ways to conduct ratio analysis 27:56 6) Key ideas with all ratio analysis 29:06 1) THE PROFIT MARGIN Tells us how much profit is generated from sales. Percentage of sales revenue that ends up as profit Good indicator of cost control and/or pricing power. Profit Margin Formula: Profit Margin = Net Income / Sales Revenue Example Where do we find the Required Inputs? Net Income: From the Income Statement Sales Revenue: From the Income Statement How to Interpret Changes in the Ratio: Expenses have changed in relation to sales... * Management is effective with cost control * Economies of scale are being utilised. Sales Revenue has changed in relation to expenses... * Change in pricing power (bargaining position with consumers) * Change in state of the economy and aggregate demand 2) THE GROSS PROFIT MARGIN (Very important for resellers and manufacturers) Profit between cost of inventory and sales price. How much sales revenue left to cover profit and all other expenses. Gross Profit Margin Formula: Gross Profit Margin = (Sales Revenue - Cost of Goods Sold) / Sales Revenue Where do we find the Required Inputs? Sales Revenue: From the Income Statement Cost of Goods Sold: From the Income Statement How to Interpret Changes in the Ratio: Sales Revenue has changed in relation to cost of goods sold... * Change in pricing power (bargaining position with consumers) * Change in product or aggregate demand (without a flow through the supply chain yet) * Market competitive position and pressures Cost of Goods Sold has changed in relation to sales revenue... * Power within the supply chain * Change in supplier or production efficiency Changes in prices of particular commodity inputs 3) RETURN ON ASSETS Return generated by the assets for those who funded the assets. Insight into success of management in income generating asset allocation and utilisation. Return on Assets Formula: Return on Assets = (Income beforeTax + Interest Expense) / ((Assets at Start of Period + Assets at End of Period) / 2) Where do we find the Required Inputs? Income before Tax: From the Income Statement Interest Expense: From the Income Statement Assets at Start of Period: From the Previous Balance Sheet Assets at End of Period: From the Current Balance Sheet How to Interpret Changes in the Ratio: Profitability has changed in relation to the level of assets... * Management is getting ‘more from less’ in regards to assets * Management has made good asset allocation decisions in terms of revenue * Management has good control of costs in relation to expenses Previously mentioned reasons: e.g. economy, market power, competitive position Level of assets have changed in relation to profitability... * Assets may have suddenly increased through large, recent * CapEx Assets may not be being replaced or replenished at the same rate * Particular choice of depreciation/amortisation policies 4) RETURN ON EQUITY Return generated for the owners of the business, the common stockholders. Insight into success of any leverage used (when comparing to return on assets). Return on Equity Formula: Return on Equity = (Net Income - Preference Dividends) / ((Common Stockholder Equity at Start of Period + Common Stockholder Equity at End of Period) / 2) Where do we find the Required Inputs? Net Income: From the Income Statement Preference Dividends: From the Income Statement or Investor Relations Equity at Start of Period: From the Previous Balance Sheet Equity at End of Period: From the Current Balance Sheet How to Interpret Changes in the Ratio: Profitability has changed in relation to the level of common stockholder equity... * Management performance is changing in the eyes of, and on behalf of, the owners/employers * Previously mentioned reasons: e.g. economy, market power, competitive position, cost control, asset utilisation Common Stockholder Equity has changed in relation to profitability... * The level of liabilities have changed (and thus equity) * A stock issue or stock buyback (i.e. equity levels have changed) Subscribe to the Channel: https://goo.gl/84Sfeg Or just check out the Channel Page: https://goo.gl/yTj9Bs Most Popular YouTube Video: https://goo.gl/Jbv685 Latest YouTube Upload: https://goo.gl/wDM83Y 1) Website http://www.accofina.com 2) Amazon Author Page: http://www.amazon.com/author/axeltracy 3) Udemy Instructor Page https://www.udemy.com/u/axeltracy/ 4) Twitter http://www.twitter.com/accofina 5) Google+ http://plus.google.com/+accofina 6) Instagram https://www.instagram.com/axel_accofina/ 7) Facebook Page https://www.facebook.com/AccoFina.Page #Accounting #FinancialEducation #FundamentalAnalysis
Views: 53619 AccoFina
A brief introduction into three basic profitability ratios: 1. Gross Profit Ratio 2. Net Profit Ratio 3. Rate of Return on Equity Ratio More videos, tasks, quizzes, handouts and other resources can be found at https://meyerflippedlearning.com/#!/home
Views: 15112 Bernd Meyer
This video shows how to perform profitability analysis using activity-based costing. Many companies serve a variety of customer types. By calculating the profitability of each type of customer, the company can determine which customer types are the most profitable and whether some customers are unprofitable. The profitability of a customer type is determined by charging direct (traceable) costs to the customer type and then allocating indirect costs to the customer type using activity-based costing. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 3833 Edspira
(0:58) Be frugal early (1:19) When you might grow at the expense of profits (2:01) Capital markets - feelings towards growth and profitability (2:16) The faster you're growing... In this series, Matt Blumberg coaches entrepreneurs through the crucial transitions that turn a startup into a sustainable business and a founder into a CEO. Blumberg explains how thoughtful processes help shape operations, talent development, financing and work-life balance. ABOUT THE KAUFFMAN FOUNDERS SCHOOL Visit the website: [http://bit.ly/1EW2br7] The Kauffman Founders School presents a powerful curriculum for entrepreneurs who wish to learn anywhere, anytime. The online education platform features experts presenting lectures in series modules designed to give Founders a rich learning experience, while also engaging them in lessons that will make a difference in their business today, tomorrow, and in the future. The Kauffman Founders School series modules include Powerful Presentations, Intellectual Property, Founder's Dilemmas, Entrepreneurial Selling, Entrepreneurial Marketing, Surviving the Entrepreneurial Life, Startups, and much more. ©2016 Ewing Marion Kauffman Foundation. May not be used without permission. To enter a request for permission to use, contact [email protected]
Views: 6566 Kauffman FoundersSchool
Profitability ratios - Gross Profit Margin, Net Profit Margin, Operating Profit Margin and Pre Tax Margin explained in hindi. They are also called as Gross Profit ratio, Net Profit ratio and Operating Profit ratio. These return on sales ratios. Similarly, we also have return on investment (ROI) ratios like return on assets (ROA), return on capital employed (ROCE) and Return on Equity (ROE). Related Videos: EBITDA, EBIT & Operating Profit: EBITDA, EBIT & Operating Profit Markup vs Profit Margin: https://youtu.be/ajUUn72pUAk Financial Ratios & Analysis: https://youtu.be/CZscpOND3Vs Return on Investment (ROI): https://youtu.be/ij7y5e2MVG4 Return on Equity (ROE): https://youtu.be/K-OhdUGqdzc ROCE (Return on Capital Employed): https://youtu.be/FjWuma0U2x0 Return on Assets: https://youtu.be/7z9jDKNub6U प्रोफिटेबिलिटी रेश्यो जैसे - ग्रॉस प्रॉफिट मार्जिन, नेट प्रॉफिट मार्जिन, ऑपरेटिंग प्रॉफिट मार्जिन और प्री टैक्स मार्जिन को इस वीडियो में हिंदी में एक्सप्लेन किया गया है। इनको ग्रॉस प्रॉफिट रेश्यो, नेट प्रॉफिट रेश्यो और ऑपरेटिंग प्रॉफिट रेश्यो के नाम से भी जाना जाता है। और रिटर्न ऑन सेल्स रेश्यो की ही तरह रिटर्न ऑन इन्वेस्टमेंट (ROI) रेश्यो जैसे रिटर्न ऑन एसेट्स (ROA), रिटर्न ऑन कैपिटल एम्प्लॉयड (ROCE) और रिटर्न ऑन इक्विटी (ROE) भी होते हैं। Share this Video: https://youtu.be/pHgiuO2ZYoU Subscribe To Our Channel and Get More Property and Real Estate Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: What are the different profitability ratios? What is the gross profit margin? What is the net profit margin? What is the operating profit margin and pre-tax margin? What is the meaning of gross profit ratio, net profit ratio, and operating profit ratio? How to calculate gross profit margin, net profit margin, operating profit margin, and pre-tax margin? How profitability ratio calculation can help you make better investment decisions? How to do profitability ratio analysis of a company? How to calculate the profit margins of any company? What is the formula of gross profit margin calculation? What is the formula of operating profit margin calculation? How to calculate the pre-tax profit margin calculation? How is gross profit margin different from operating profit margin? How profitability ratio calculation helps you to compare companies before investing? Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Twitter - http://twitter.com/assetyogi Facebook – https://www.facebook.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Google Plus – https://plus.google.com/+assetyogi-ay Instagram - http://instagram.com/assetyogi Pinterest - http://pinterest.com/assetyogi/ Hope you liked this video in Hindi on “Profitability Ratios - Gross, Net, Operating Profit Margin”.
Views: 30687 Asset Yogi
Learn all about profitability analysis in just a few minutes! Fabio Ambrosio, CPA, instructor of accounting at the Central Washington University, explains how profitability analysis is used by both business owners and managers to evaluate the ability of a business to generate profit in the future. Asset turnover, return on total assets (ROA), return on stockholders' equity (ROE), earnings per share (EPS), price-earnings (P/E) and dividends per share ratios are explained.This video is part of a complete, condensed Principles of Accounting series presented in short, digestible summaries. Access the free study guides for Principles of Accounting here: https://www.coursehero.com/sg/principles-of-accounting/ Course Hero's Principles of Accounting video series covers the essentials of introductory accounting. Our short digest covers everything you need to know about the accounting cycle, accounting systems and controls, accounting for receivables and long-term assets, accounting for liabilities and equities, entity organizations and business analysis. The video series begins with an introduction to Generally Accepted Accounting Principles (GAAP) and an exploration of accounting systems. It continues with an exploration of journalizing, trial balances, and the adjusting process that leads to the creation of the four major financial statements companies produce: income statement, statement of owner’s equity, balance sheet and statement of cash flows. Along the way, you'll learn about: • GAAP and other legal requirements for accounting and reporting • The Accounting Equation • Single-Step and Multiple-Step Financial Statements • Double-Entry and Manual Accounting Systems • The General Ledger and Chart of Accountings • Trial balances and the adjusting process • Ethical standards in accounting The series continues by providing a deeper understanding of how entities employ accounting principles, including: • Accounting for merchandising businesses, including inventory costing methods and systems • Internal and cash controls • Accounting for receivables and long-term assets • Accounting for current liabilities and payroll, long-term liabilities and investments • Categories of businesses and the four types of business entities • Corporate annual reports Finally, the Principles of Accounting crash course includes a primer on business analysis tools, including preparation of a statement of cash flows and the uses ratio analysis. Additional concepts we cover in these quick videos include: accounts payable, accrual basis accounting, cash basis accounting, Financial Accounting Standards Board (FASB), periodic and perpetual inventory systems, horizontal analysis, vertical analysis, liquidity analysis, matching principle, proprietorship, limited liability company (LLC), partnerships, operating income, Sarbanes-Oxley Act (SOX), subsidiary ledgers and single-step income statements. Explore Course Hero’s collection of free Business and Accounting Study Guides here: https://www.coursehero.com/sg/ About Course Hero: Course Hero helps empower students and educators to succeed! We’re fueled by a passionate community of students and educators who share their course-specific knowledge and resources to help others learn. Learn more at http://www.coursehero.com. Master Your Classes with Course Hero! Get the latest updates: Facebook: https://www.facebook.com/coursehero Twitter: https://twitter.com/coursehero
Views: 60 Course Hero
You can subscribe to all my Marketing Video Lessons here: http://30minutes.marketing/subscribe This customer profitability analysis video explains why and how to calculate it, and what you should do with the results. Visit My Website: http://30minutes.marketing/ Follow Me On Social Media: Linkedin: https://www.linkedin.com/in/paulocalisto Facebook: https://www.facebook.com/30minutesmar... Twitter: https://twitter.com/30MinutesMarket Customer Profitability Analysis assists business owners, entrepreneurs and marketing experts recognize the earnings coming from each and every customer. The Customer Profitability Analysis, is the net profit or to put it simply the revenue minus all the costs and expenses associated to one individual customer. This assists business owners or marketers in recognizing which customers bring more profit to their business. This understanding it is exceptionally valuable due to the fact that if used correctly will certainly increase the business profitability. At the above video, I will exemplify with a Spa business. Basically in this example a Spa will analyze their customer profitability and divide them into five different groups. When analyzing the data and segment it into five groups, it will come to the conclusion that the best customers, what I called on the example as the five star customers, are only 20% of their total customers but they actually drive 80% of the entire spa profit. This kind of information that a customer profitability analysis will provide is extremely important to any business who wants to be successful. Because most of the time you will understand that a small group of customers are extremely important to your business, and you need to continue to make sure that they keep using your products and services regularly, or even more than they used to. Besides that, you have the opportunity to determine what geographic, demographic and psychographic characteristics they have in common, and use your marketing dollars to drive more customers with the same characteristics to experiment your products. Also, you will have the opportunity to know the customers that are not as good as this 5 stars, but that are close to this group. Meaning that after you concluded analyzing your customer profiles, they are not at the 5 stars customer group but on the 4 or 3 stars groups. By knowing who these persons are, you will be able to build a relationship with them with some marketing tactics that have the goal of moving them into the 5 star customers’. This technique of “pushing” your existing customers into your best customers group, most of the times is easier and cheaper than try to find completely new great customers. Finding other prospective customers with the exact same qualities and attributes as them is also a smart way to spend your marketing dollars. Example: if they are sales professionals’ females that live in a kilometer distance from your shop, with ages between 30 to 45 years old, you should invest in marketing your products to ladies that have the exact same characteristics as your five star customers. This way, you will not waste your marketing money by promoting your products to customers that will bring you not much profit. For your “worst” customers, most of the times I recommend businesses to leave them alone and don’t waste their marketing dollars in trying to transform them into good customers. Often, after studying the customer profitability analysis, company owners recognize that these customers in reality don’t bring much profit to the company and in many cases they are not profitable at all, because when we calculate the net profit, our actual costs and expenses with them are higher than the revenue they brought to the company.
Views: 12612 Paulo Calisto
How do companies make money? What are profits? Revenues? How are prices set? This week, Jacob and Adriene are talking business. Whether you're selling cars, pizza, or glow sticks, this video has pretty much all the information you need to run a business. Well, not really, but there's a lot of good stuff in here. *** Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark, Eric Kitchen, Jessica Wode, Jeffrey Thompson, Steve Marshall, Moritz Schmidt, Robert Kunz, Tim Curwick, Jason A Saslow, SR Foxley, Elliot Beter, Jacob Ash, Christian, Jan Schmid, Jirat, Christy Huddleston, Daniel Baulig, Chris Peters, Anna-Ester Volozh, Ian Dundore, Caleb Weeks -- Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Views: 441185 CrashCourse
https://www.profittrans4mations.com.au/ - see how to increase profit using business growth strategies and how to improve profitability and net profit margin of any small business. Visit our site to learn more about our business management training courses and grab a book for free! Attend our FREE Training Masterclass on 5 Steps Our Clients Used to Double Their Business Profits: https://profittrans4mations.com.au/free-content/free-business-webinars/ LIKE - https://facebook.com/profittrans4mations SUBSCRIBE! https://profittrans4mations.com.au/subscribe There are hundreds of business growth and profit increasing strategies, than when applied through expert guidance will rapidly increase the profits of any business. 80% of these business development strategies are not lead generation so that means there's no implementation cost. This video is one of many created by Profit Transformations, leading experts in business growth and net profit margin increasing strategies and courses. If you have any questions or comments just ask as the comments are monitored and replied to promptly. TAGS: net profit margin, Profit strategies, how to improve profitability, business development strategies, business development strategy, business management, small business management, growth training, Tim Stokes, how to increase profits, business growth strategies, business growth strategy, net profit margins, how to increase profit, increase sales, increase profit, business growth, profit percentage, earnings percentage https://www.youtube.com/watch?v=uZhOcvd51B0 -~-~~-~~~-~~-~- Please watch: "Business Management Made Easy to Increase Profits Rapidly & for FREE | Business Course Online" https://www.youtube.com/watch?v=RMa1QLeJXpI -~-~~-~~~-~~-~-
Views: 3123 Tim Stokes
http://www.subjectmoney.com http://www.subjectmoney.com/articledisplay.php?title=Financial%20Statement%20Analysis%20and%20Ratios In this financial ratio analysis lesson we are cover profitability measures. They all have the main purpose of measuring how efficiently the firm manages its operations and assets and are probably the most widely use ratios among financial analyst https://www.youtube.com/user/Subjectmoney https://www.youtube.com/watch?v=tKLcdoFKgp8
Views: 16660 Subjectmoney
This lecture is part of my Financial Statements Analysis course at Bryant University. In it, I discuss both common and more sophisticated measures of profitability.
Views: 879 Jack Trifts
The case I use in this video is similar to the one I got in my final round when I was interviewing at Bain. It initially sounds like a simple profitability case, but the questions that come afterwards turn it into a clear MBB-level case study. So don't be surprised if you find cases like this in your interviews in Bain, McKinsey or BCG. After Bruno and I started coaching candidates for their interviews, we used this case several times to teach our coachees. From our experience, although many could solve the diagnostics bit of the case, they struggled with the follow-up questions. I'm confident to say only 3 out of 10 (maybe less) could do well from the first try. And that's because the hardest questions were saved to the end of the case, rather than made in the beginning, like we're used to. If you're naturally a structured thinker, that shouldn't be a problem. And that's what the interviewer wants to find out. If you're not, there's still hope. Most people don't start out naturally thinking like consultants. They learn how to do that. We've taught this skill to many candidates in coaching sessions and with our online courses. To get a feel of what we're up to, try out our FREE course, Case Interview Fundamentals. Enroll in your FREE course to learn techniques that make you stand out in your interviews by teaching you how to think like a top consultant: www.craftingcases.com/FREECOURSE 00:47 - Case question 01:21 - Bruno's answer 15:44 - What really caused the profitability decrease 16:20 - Follow-up framework question 17:36 - Bruno's answer 24:54 - What I liked most about Bruno's performance 27:23 - What I think Bruno could have done better If you liked this video, make sure you click the Like button and leave a comment below! (This lets Youtube know this video's good and will make it show it to more people). If you want to hear more from us, click Subscribe (and click the Alarm Bell button if you want to get notified whenever we release a new video). If you have any questions, ask it in the comments below - I'll read and answer each one of them and may even make a video about it, who knows! And if you know someone who might benefit from our videos, make sure you share it using the Share button next to the Like button. Hope the best for your case interview preparation and I'll see you on the next video :) Julio Music in the video: "Autumn Mvt 3 Allegro" by John Harrison with the Wichita State University Chamber Players Licensed under Creative Commons: By Attribution 3.0 License https://creativecommons.org/licenses/by/3.0/ "Funk Game Loop" Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 3.0 License https://creativecommons.org/licenses/by/3.0/
Views: 37607 CraftingCases
First 500 people get 2 months free of Skillshare: http://skl.sh/polymatter7 Patreon: https://patreon.com/polymatter Twitter: https://twitter.com/polymatters Reddit: https://reddit.com/r/PolyMatter Discord: https://discord.gg/polymatter Uber may be the highest-valued private company in the world, but its economic troubles are profound and concerning. This includes a paid sponsored promotion which had no part in the writing, editing, or production of the rest of the video. Music by Varsity Star: https://varsitystar.bandcamp.com/releases their Facebook: https://www.facebook.com/varsitystarmusic/ Special thanks to http://ridester.com for looking over the script in advance. Ridester offers resources for ride share drivers. Brief music clip: Teddy Bear Waltz Kevin MacLeod (incompetech.com) Licensed under Creative Commons: By Attribution 3.0 License http://creativecommons.org/licenses/by/3.0/ VHS fast forward effect modified from https://www.youtube.com/watch?v=s_auAhu-91U https://www.forbes.com/sites/lensherman/2017/12/14/why-cant-uber-make-money/#7d83f5f410ec Dr Seuss Style Font: “Yikes” by Rick Montgomery https://www.dafont.com/yikes.font?l=10&l=1 http://flopstarter.com https://medium.com/enrique-dans/why-is-uber-sweeping-all-before-it-because-it-understands-economies-of-scale-70d104688783 https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee http://ritholtz.com/2018/05/tlc-medallion-owners-created-uber/ https://www.caseyresearch.com/forget-stocks-buy-taxi-medallions/ https://www.nytimes.com/2017/09/10/nyregion/new-york-taxi-medallions-uber.html http://www.nyc.gov/html/media/totweb/taxioftomorrow_history_regulationandprosperity.html https://www.nytimes.com/1996/05/11/nyregion/medallion-limits-stem-from-the-30-s.html https://www.theverge.com/2018/6/26/17500510/uber-london-license-appeal-court-decision?utm_campaign=theverge&utm_content=chorus&utm_medium=social&utm_source=twitter https://www.statista.com/statistics/277229/facebooks-annual-revenue-and-net-income/ https://www.washingtonpost.com/news/the-switch/wp/2016/06/27/how-much-uber-drivers-actually-make-per-hour/?utm_term=.cc5e13967aec https://www.cbinsights.com/research-unicorn-companies https://expandedramblings.com/index.php/uber-statistics/ https://medium.com/uber-under-the-hood/uber-in-small-towns-and-cities-a-data-deep-dive-6e3cc2a250f4 https://www.wsj.com/articles/how-self-driving-cars-could-end-uber-1494154805 https://www.wsj.com/articles/with-kalanick-out-ubers-troubles-are-just-beginning-1498049054 https://www.wsj.com/articles/with-kalanick-out-ubers-troubles-are-just-beginning-1498049054 https://www.statista.com/chart/12059/uber-revenue-bookings-and-net-loss/ https://www.theguardian.com/technology/2018/mar/01/uber-lyft-driver-wages-median-report https://www.ridesharingdriver.com/uber-fees-cancellation-booking-cleaning-fees/
Views: 1174825 PolyMatter
Law firm profitability software that offers deep analysis and invaluable insights into the drivers of your business. Understand which are the positive drivers of your law firm, and which are not. Inform your decisions with sound law firm analytics to deliver a compelling competitive advantage, improved service to clients, and enhanced law firm profitability analysis.
Views: 477 Decision Analytics Group
Use Demand Metric's Product Profitability Analysis Template to analyze each product by: Product Name, Price, Unit Cost, Unit Sales, Revenues, Costs of Goods Sold, Gross Contribution, Marketing & Sales Costs, Product Profit/Loss, and Gross Margin. Then, view your Product Charts. Get this tool @ http://www.demandmetric.com/content/product-profitability-analysis
Views: 4514 Demand Metric
A short 4m30s animation about how to visualize customer and product profitability. Introduces the whale curve concept, how it is created, what it tells us and how it changes as a result of gap analysis to determine the profit potential. Links to two websites: visualign.net = Visualign, a consulting firm specializing on data visualizations to improve business performance. rapidbusinessmodeling.com = RapidBusinessModeling, a management consultancy firm with the mission to improve profitability.
Views: 5563 VisualignCorp
I take you through an additional example of customer profitability analysis from Chapter 14 - Cost Accounting - A Managerial Emphasis - Horngren, Datar and Rajan - 15th Edition
Views: 5755 Tech Asia
I have discussed about liquidity, profitability, solvency and and activity ratios in this video
Views: 36647 Amjad Niaz
Profitability Analysis in your Business Plan on Strategy Sunday. On today's show, I look at the Profitability Analysis process worksheets to work out your fixed expenses, variable expenses, total revenue, profit and expense in order to figure out your ROI. The Profitability Analysis gives you idea on whether your business model in your plan will be profitable and hopefully you get ideas on how to make it more profitable with that analysis. My offer this week is Plan your Business Training at http://jgtips.com/plan.
Views: 15 Jane Gardner
Learn more about liquidity ratios here on the tutor2u website: https://www.tutor2u.net/business/reference?q=liquidity+ratio In this short revision video, Jim Riley from tutor2u Business introduces the concept of liquidity ratios and explains how to calculate and interpret the two main ratios: the current ratio and acid-test ratio.
Views: 130515 tutor2u
Described the concept, reason and logic behind formation of different formulas of analysis of financial statements. I have discussed the core concept of contents used in the following formulas: Stock Turnover Ratio, Debtors Turnover Ratio, Creditors Turnover Ratio, Gross Profit Ratio, Net Profit Ratio, Operating Profit Ratio and Operating Expense Ratio Further discussed concept of Cost of Goods Sold, Average Accounts Receivable and Average Accounts Payable so that student need not to remember formula to solve any question Connect on Facebook : https://www.facebook.com/ca.naresh.aggarwal Download Assignments: https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing
Views: 82149 CA. Naresh Aggarwal
Explained the concept of Gross Profit Ratio, Net Profit Ratio, Operating Profit Ratio and Operating Profit Ratio. Student can also watch following lectures for better understanding of the topic: 1. https://www.youtube.com/watch?v=76gMXQBnbps 2. https://www.youtube.com/watch?v=1iYK6s5_Db0 3. https://www.youtube.com/watch?v=hMoOk6iI564 4. https://www.youtube.com/watch?v=Nx0gysqp4ik Dwonload Assignments: https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing #Accounting #RatioAnalysis
Views: 42132 CA. Naresh Aggarwal
Discussion of the different ways of performing financial statement analysis including examples of ratio calculations and comparisons. Other videos in this series: Part 1 - Introduction to Financial Statement Analysis Part 2 - Horizontal Analysis Part 3 - Trend Analysis Part 4 - Vertical Analysis Part 5 - Benchmarking Part 6 - Using Ratios and Comparing to Industry Averages (Part 1) Part 7 - Using Ratios and Comparing to Industry Averages (Part 2) Part 8 - Using Ratios and Comparing to Industry Averages (Part 3) Part 10 - Using Ratios and Comparing to Industry Averages (Part 5) For more accounting/how to eLectures (and accompanying lecture notes), blog and a discount textbook-store visit www.TheAccountingDr.com Please note that videos may require Flash media and may not play on devices without Flash capabilities (i.e. iPad).
Views: 11281 Brian Routh TheAccountingDr
GET THE Product Excel Spreadsheet TEMPLATE: http://smallbusinesschampionbundle.com Product Profitability Analysis Excel Template is available to Small Business Owners and Analysts. Identify your most profitable products with this spreadsheet. Maximize your winners and eliminate your losers. SUBSCRIBE! http://www.youtube.com/subscription_center?add_user=MrRickGrantham FREE EBOOK: -Small Business Champion- http://rickgrantham.com/smallbusiness-champion-optin.html Rick Grantham's personal website: http://RickGrantham.com Rick Grantham's personal accounts -- http://www.linkedin.com/in/rickgrantham -- http://plus.google.com/116899263090134176958 -- http://www.facebook.com/AuthorRickGrantham -- http://twitter.com/BIStrategyGuy
Views: 7814 Rick Grantham
Companies use profitability ratios to determine how well they are generating income compared to accounts on their balance sheet and income statement. It is vital to a companies growth to determine their profitability so they can plan and form better growth strategies. We will cover three primary profitability ratios: Return on Assets, Return on Equity, and Profit Margin. ---------- Accounting tutoring on Chegg Tutors Learn about Accounting terms like Profitability Ratio Analysis on Chegg Tutors. Work with live, online Accounting tutors like Nathan G. who can help you at any moment, whether at 2pm or 2am. Liked the video tutorial? Schedule lessons on-demand or schedule weekly tutoring in advance with tutors like Nathan G. Visit https://www.chegg.com/tutors/Accounting-online-tutoring/?utm_source=youtube&utm_medium=video&utm_content=managed&utm_campaign=videotutorials ---------- About Nathan G., Accounting tutor on Chegg Tutors: Texas State, Class of 2010 Finance/Accounting major Subjects tutored: Accounting TEACHING EXPERIENCE Educated from Texas State University, I received my BBA Accounting in 2010. During college, I would often study with classmates. I noticed how much I enjoyed helping them with Accounting. I then knew I had a skill underutilized. My passion for tutoring fuels my desire to see you succeed. With over 7 years of instructional experience, I will provide the tools to help you master Accounting. Check out my YouTube Channel to learn more about Accounting: https://www.youtube.com/channel/UCCyBG-qtLqfvCdSG34ES8Ag. EXTRACURRICULAR INTERESTS I am a man of many tastes. I really enjoy technology, racquetball, basketball, real estate investing practices, web development, and comedy! I love diversifying my interests so I never get bored lol. Hope to hear from you soon! We'll setup a plan to help you succeed in Accounting. Want to book a private lesson with Nathan G.? Message Nathan G. at https://www.chegg.com/tutors/online-tutors/Nathan-G-862370/?utm_source=youtube&utm_medium=video&utm_content=managed&utm_campaign=videotutorials ---------- Like what you see? Subscribe to Chegg's Youtube Channel: http://bit.ly/1PwMn3k ---------- Visit Chegg.com for purchasing or renting textbooks, getting homework help, finding an online tutor, applying for scholarships and internships, discovering colleges, and more! https://chegg.com ---------- Want more from Chegg? Follow Chegg on social media: http://instagram.com/chegg http://facebook.com/chegg http://twitter.com/chegg
Views: 1648 Chegg
Clicked here http://www.MBAbullshit.com/ and OMG wow! I'm SHOCKED how easy.. For instance you are an advertising executive and just after initiating your unique commercial, the sales of your cola drink jumps to $1 million dollars. Is that a decent outcome? Yes? In fact, you definitely don't know! What are the reasons? What if you exhausted $1 million dollars in advertising costs and also the ingredients and container of this cola soda also cost $1 million dollars, to find a total of $2 million? You will have earned $1 million dollars, but will have invested $2 million dollars on advertising in addition to "cost of goods." Furthermore, one would still seek to join the expenses of the business enterprise like rent, salaries, etc. Therefore, what quantity should your advertising grow sales before we are able to assume that the excess sales you observed from advertising is sufficient to at any rate pay for your complete costs and expenses? Maybe $2 million? $3 million? What quantity exactly? This is actually the principle of "Break Even." A corporation break even point is the precise amount of sales that you need in which the money may possibly be merely enough to pay for your costs and expenses. Whereas, a task's (ex. An advertisement's) break even point is exactly where the rise in sales added by way of the new undertaking is ample to fund the additional costs and expenses brought by that new scheme. Recognize that achieving break even does not mean you are receiving a profit though either; like I reported previously, it only means you find yourself making enough to pay for your costs and expenses. http://www.youtube.com/watch?v=ar7mVYY-AO0 Accordingly, so as to produce a profit, you'd need to 1) produce more sales so that you will go beyond the break even point, and/or 2) improve your merchandise's "contribution margin." Precisely what is contribution margin? It happens to be the difference between the price that you intend to deal in your merchandise and your "variable costs." Variable costs are costs which aren't "fixed" (fixed costs are things like fixed rent and flat compensations which may not climb regardless of whether you generate and/or sell more products or services). For this reason, contribution margin is different from "profit" for the reason that once we compute profit, we integrate fixed costs and overhead. http://mbabullshit.com/blog/cost-volume-profit-analysis-break-even-analysis/ Cost Volume Profit Analysis, on the other hand, is definitely parallel to but bigger than Break Even Analysis, as it carries going more than just figuring out how much to sell with the intention to cover costs and expenses. With cost volume profit analysis, we likewise try to resolve how much we might sell if we want to reach a certain target profit, in which we take into account taxes as well. breakeven, break even analysis, cost volume profit analysis, what is break even analysis
Views: 286213 MBAbullshitDotCom
Cost Allocation, Customer Profitability Analysis, Sales-Variance Analysis Lecture
Views: 2020 Ed Kaplan
Learn balanced scorecard and strategic profitability analysis quiz on MCQsLearn, a free website http://mcqslearn.com for exam preparation. Practice MCQs with balanced scorecard and strategic profitability analysis quiz questions and answers for cost accounting practice tests. This free video contains 15 MCQs based tests on balanced scorecard and strategic profitability analysis in cost accounting for online competitive exam preparation.
Views: 160 Bushra Arshad
Profitability Ratio Analysis Profitable ratios measure the profitability of a company through the margins & earnings that it generates. Profitability ratios can be classified into Margin ratios – Expresses profitability of the company through ratios like GPM, OPM & NPM Earnings ratios – Expresses profitability of the company through ratios like ROE, ROCE & ROA In this video 4 profitability ratios have been emphasized for Star Motocorp for 31-03-2017 a) OPM b) NPM c) ROCE d) ROE a) OPM – Is calculated as EBIT (aka operating profit)/Sales Operating profits are arrived by deducting COGS and Operating costs from sales. OPM signifies the operating profit (gross profit – operating costs) that the Co. generates for every Rs. 1 of sales that it has recorded. OPM can be higher either because the company is able to sell more of its products at higher prices or control costs or a combination of both. The OPM for Star Motocorp was. 45000/305000 = 15% b) NPM – Net profit/sales The NPM is the after-tax profit that the Co. generates of every Rs. 1 in sales. It is the amount left after deducting fixed and variable costs from revenues. Co. generating higher NPM consistently need to be seen in positive light. The NPM for Star Motocorp was. 35000/305000 = 11% C) ROCE – Is the return that the company makes on the capital that it employs. The Co. has 2 sources of funds namely debt (long + short term borrowing) and equity. The ROCE is calculated as EBIT/(DEBT + EQUITY CAPITAL) Operating profits or EBIT is taken in the numerator as these are the profits that the company has made by running its day to day operations The ROCE for Star Motocorp was 45000/5000+100000 = 43% The company enjoys high ROCE, indicating that it has a competitive advantage d) ROE is the return that the Co. earns on the equity (monies shareholders have invested + retained earnings. ROE is calculated as ROE = Net profit/shareholders equity The ROE for Star Motocorp was 35000/100000 = 35% A higher ROE indicates that the Co. does not have to rely on external capital to grow its business and enjoys a competitive advantage Investors need to study the Dupont model to understand what actually drives the ROE The ROCE & ROE need to be substantially higher than the cost of capital to generate shareholder wealth. It's important for an investor to study the profitability ratios of different companies in the same industry to ascertain how a particular company fairs on this front.
Views: 439 Fintapp
Startup Funding Explained: https://youtu.be/677ZtSMr4-4 The Rest Of Us on Patreon: https://www.patreon.com/TheRestOfUs The Rest Of Us on Twitter: http://twitter.com/TROUchannel The Rest Of Us T-Shirts and More: http://teespring.com/TheRestOfUsClothing Thanks to my bro for the background tune. Soundcloud link: https://soundcloud.com/ininjanic Thanks to my Gold Patrons: friuns YouExec.com Will Tachau Paul Pivaru Frantisek Sumsala Cesar E. Lopez Duncan Kennedy Hannes Ott Leilah Ruan Jonathan Rieke Remy Rojas August Noë
Views: 1656086 The Rest Of Us
Lecture 7: ABC & Customer Profitability Analysis Professor Noel Cooperberg (Chapter 5) After giving a brief introduction to activity-based costing, the Professor goes on to review key terms associated with the topic. Activity based costing is also compared and contrasted to volume-based costing. Afterwards, the method of developing an ABC system are developed, including activity analysis and the assignment of resource costs. NOTE: This video has been trimmed (and possibly still in the process of being trimmed). The markups below will no longer be accurate for this video. The markups will be fixed as soon as time allows. **Setup / Class Agenda: 0:00 - 6:14 Activity Based Costing Introduction (example): 6:15 Overview of Learning Objectives: 9:29 ABC vs. Volume Based Costing: 10:50 Volume-based Costing: 14:03 Review Question: 16:04 Activity-based Costing (key terms): 19:00 Developing an ABC System: 20:45 Activity Analysis (Step 1): 22:11 Assign Resource Costs (Step 2 & 3): 24:58 Question: 26:00 **Silence / students solving a problem: 26:31 - 31:23 Question Review / Solution: 31:24 Question: 42:11 ** = consider trimming. To receive additional updates regarding our library please subscribe to our mailing list using the following link: http://rbx.business.rutgers.edu/subscribe.html
Views: 3576 Rutgers Accounting Web
Discussion of the different ways of performing financial statement analysis including examples of ratio calculations and comparisons. Accompanying lecture notes: http://tiny.cc/nw1enw -- Thank you all for your wonderful support. Because of your support we have been able to reach and help numerous accounting students all over the world. Please continue to be a part of our mission to help other accounting students be successful by giving our videos thumbs up, adding our videos to your favorites and subscribing to our YouTube channel (click on more info on the videos). Subscribe: http://www.youtube.com/subscription_center?add_user=routhwsuedu Friend me on Facebook: http://www.facebook.com/TheAccountingDoctor -- Other videos in this series: Part 1 - Introduction to Financial Statement Analysis Part 2 - Horizontal Analysis Part 3 - Trend Analysis Part 4 - Vertical Analysis Part 5 - Benchmarking Part 6 - Using Ratios and Comparing to Industry Averages (Part 1) Part 7 - Using Ratios and Comparing to Industry Averages (Part 2) Part 8 - Using Ratios and Comparing to Industry Averages (Part 3) Part 10 - Using Ratios and Comparing to Industry Averages (Part 5) For more accounting/how to eLectures (and accompanying lecture notes), blog and a discount textbook-store visit www.TheAccountingDr.com Please note that videos may require Flash media and may not play on devices without Flash capabilities (i.e. iPad).
Views: 5998 Brian Routh TheAccountingDr
This video describes how a job costing report can be used to evaluate revenue, product costs, and gross profit for individual jobs.
Views: 1305 KurtHeisinger
This video illustrates the Whale Curve instrument to analyze customer and/or product profitability. This particular presentation is using Excel and Tableau, a very powerful data visualization product. To learn more about this or other methods to improve your business performance through data visualizations, please visit us at http://visualign.net
Views: 3323 VisualignCorp
OMG wow! So easy clicked here http://mbabullshit.com/ for Financial Ratio Analysis Explained Financial Ratio Analysis Explained in 3 minutes Sometimes it's not enough to simply say a company is in "good or bad" health... To make it easier to compare a company's health with other companies, we have to put numbers on this health, so that we can compare these numbers with the numbers of other companies... So now... how do we use numbers to assess company health? http://www.youtube.com/watch?v=TZZFBkbC2lA This is where Financial Ratios come in... Very common types of financial ratios are Liquidity Ratios, Profitability Ratios, and Leverage Ratios. Liquidity Ratios can tell us how easily a company can pay its debts... so that the company doesn't get eaten up by banks or other creditors. An example of this is the Current Ratio... This tells us how much of your company's stuff can be easily changed into cash within the next 12 months so that it can pay debts which need to be paid also within 12 months. The higher your current ratio is, the less risky a situation your company is in. Now moving on... Profitability Ratios can tell us how good a company is at making money. An example of this is the Profit Margin Ratio. This tells us how much profit your company earns compared to your company's sales. Normally, a higher number is better; because you want to earn more profit for every $1 of sales that you get. And finally, what about Leverage Ratios? These can tell us how much debt the company is using to make the company run and stay alive. An example of this is the simple Debt Ratio. This tells us how much % of a company's assets are paid for by debt. Normally, a company is considered "safer" when the debt ratio is low. Note that this was just a very simple overview. There are a lot more financial ratios & many different ways of using them; plus a lot of problems and disadvantages in using them as well. Would you like to SUPER easily learn more about many financial ratios with even deeper analysis & detail? Check out my FREE videos at MBAbullshit.com See ya there!
Views: 1287560 MBAbullshitDotCom
Consulting case interview example with sample solution for the profitability problem case "Chewing Gum Manufacturer" recorded on http://www.preplounge.com. Join our case interview community and solve dozens of consulting cases with other applicants or experts.
Views: 47402 PrepLounge - Case Interview Videos
Link to case study files : https://we.tl/t-bacGOCkyF3 In this session we will learn about Customer Profitability Analysis basis percentile function. Customer Profitability Analysis is method of finding most profitable customers and focusing on them to generate more revenue with less efforts.
Views: 1295 Markytics "Analytics Mastery Club"
Profitability Index or Benefit Cost Ratio is explained in Hindi. It is a capital budgeting technique just like NPV, IRR and Payback Period that helps you in analysing any investment or business. Related Videos: NPV (Net Present Value): https://youtu.be/SpHIBfPGwx8 IRR (Internal Rate of Return): https://youtu.be/x6eXfx2Tv-w NPV vs IRR: https://youtu.be/kUV9xE2B7KU Payback Period Method: https://youtu.be/8MnGVL_3QuI Discount Rate - https://youtu.be/XqqD1d713W8 इस वीडियो में प्रोफिटेबिलिटी इंडेक्स या बेनिफिट कॉस्ट रेश्यो को हिंदी में समझाया गया है। Share this Video: https://youtu.be/7CCKn_eixZ0 Subscribe To Our Channel and Get More Property and Real Estate Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: What is profitability index? How to calculate benefit cost ratio? What is the best method for cost benefit analysis? How to calculate profit using profitability index method? How to use the profitability index formula for investments? How to calculate profits for investment in Microsoft Excel using the profitability index formula? What is the profitability index calculation formula for excel calculation? What are the best methods for profit calculation for any business, project or investment? What is the manual calculation formula of profitability index? How to evaluate cost benefit ratio for any investment? How to calculate the cost and return ratio for any investment plan? How to know which business, project or investment is best for you? Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Twitter - http://twitter.com/assetyogi Pinterest - http://pinterest.com/assetyogi/ Linkedin - http://www.linkedin.com/company/asset-yogi Instagram - http://instagram.com/assetyogi Facebook – https://www.facebook.com/assetyogi Google Plus – https://plus.google.com/+assetyogi-ay Hope you liked this video in Hindi on “Profitability Index”.
Views: 13169 Asset Yogi
This video gives a brief overview of what is covered in the course Cost Structure and Profitability Analysis. Accenture Academy offers rich and flexible online learning, focused on improving the skills, capabilities and productivity of critical workforces. Learn more here: http://bit.ly/1S6B5Dr
Views: 1114 Accenture Academy