6 Profitability Ratios You Should Know

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In this video I share six profitability ratios you should know:
▪ Return on Assets
▪ Return on Equity
▪ Return on Capital Employed
▪ Net Profit Margin
▪ Operating Profit Margin
▪ Gross Profit Margin
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⏱️TIMESTAMPS
00:00 - Intro
00:19 - 1. Return on Assets
02:04 - 2. Return on Equity
03:16 - 3. Return on Capital Employed
05:23 - 4. Net Profit Margin
06:40 - 5. Operating Profit Margin
08:00 - 6. Gross Profit Margin
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[@AccountingStuff]

Are there any other Financial Ratios you'd like me to cover? ⏱TIMESTAMPS 00:00 - Intro 00:19 - 1. Return on Assets 02:04 - 2. Return on Equity 03:16 - 3. Return on Capital Employed 05:23 - 4. Net Profit Margin 06:40 - 5. Operating Profit Margin 08:00 - 6. Gross Profit Margin

[@LesonaCrochet]

Please make a video about contracts

[@AccountingStuff]

Thanks for your request!@@LesonaCrochet

[@Magdalena1222]

could you do investment ratios? also I have a question: Is Profit after tax (PAT) the same as EBIT?

[@AccountingStuff]

Thanks for your request! EBIT is the same as Operating Profit. You have to deduct interest and tax to get to PAT@@Magdalena1222

[@Magdalena1222]

@@AccountingStuff So why do we use 3 different names: ebit, operating profit and PAT? Thanks you for your answer James :)

[@rubenlubbe]

Might be a bit of a stretch to ask, but consolidated financial accounting overview would be a great video😂 there's a lot of journal entries relating to the at- and since- aquisition of a subsidiary and elimination of all intragroup transactions. It gets quite confusing having to remember the structure of everything. Thanks for your videos! They help a lot with recap before examinations.

[@AccountingStuff]

Thanks for your request!

[@TerryCollinsP31Lifestyle]

WOW!!! I’m so glad I found your channel.

[@kixviz]

Just want to say your video was in my recommended page. And I’m not even trying to be an accountant. But the way you explain the topics in your videos is so simple and easy to grasp the concept, I watch your videos to learn something new! Great content keep up the good work!!

[@AccountingStuff]

Thanks, that's great to hear!

[@blueskybd.]

This video helped me Significantly on the night before my Finance exam, I am very much grateful to your channel. Your videos also helped me to clear my doubts on Ledger and Equity from Accounting principles course. Thank you very very much for your Great content. (I am a Management major Under-grad student, btw)

[@AccountingStuff]

Hope your exam went well. If you haven't taken it yet then good luck!!!

[@blahhh_blahh]

i want that you should upload regularly which would help students like me who want to learn more , more than what school is teaching me

[@AccountingStuff]

I'll try my best!

[@paritosh_8586]

Hello James! Loved your full length compilation on accounting which helped me with my investment journey. Request you to make a series on how to detect accounting fraud by listed companies through analysis of the holy Trinity : income statement, cash flow and balance sheet.

[@AccountingStuff]

Thanks for your request!!

[@tarunika935]

Hi James Chudley! I just want you to know that you've made a massive impact on my life. My kids and I sit and watch your videos together at dinner time. Great for family movie nights! Love you Pookie bear. I named my child chudley because your video on how to do a bank reconciliation (EASY WAY) was so inspiring. I would sit and cry at how everything finally made sense. I love you man, take care! Love the dog too. Bye James

[@JonahRaffoDay]

Im her child, my mom really loves you. I do get bullied in school sometimes for my name(James Chudley), but im glad that I can be a part of your legacy. My mom wants to raise an army of Chudleys so we can all work in her accounting firm. Please come to Brazil, so we can meet you. My mom says you guys went to school together in 1986. U may be my father. thx james. Love, Chudley

[@stevewashington2716]

Love the videos; I plan on getting an associate degree in accounting and a job as a bookkeeper.

[@AccountingStuff]

Nice one! Best of luck in your studies

[@khebache.med-amine3335]

Thanks a lot for this video ✅ , much appreciated 👍

[@AccountingStuff]

No problem, hope it helped!

[@khebache.med-amine3335]

@@AccountingStuff very useful ✅

[@AccountingStuff]

Glad to hear it@@khebache.med-amine3335

[@LesonaCrochet]

Please make a video about contracts

[@dianaospina1623]

Thanks for all your content, I have a question on ROCE, you said capital employed is long-term debt, but you used current liabilities amount in the example shouldn't it be non-current?

[@Phuphuma]

Both are correct. Remember the accounting equation. He said assets less current liabilities. The same answer is derived with equity plus long term liabilities (62,5bUSD)

[@waddahibrahim99]

Please do market ratios , P/E ratio , dividend yield ratio ...etc

[@AccountingStuff]

Thanks for your requests! All good ideas

[@boyrobloxian6420]

I enjoyed this video

[@AccountingStuff]

Glad to hear it :)

[@alexanderluthor8352]

Cool!!! But what about ROIC ?

[@AccountingStuff]

That's another good one!

[@user-bs4nd1eb6d]

James can you please do a video about PARTNERSHIP ACCOUNTS, by the way this video was great,THANK YOU

[@AccountingStuff]

Thanks for your request! I'll keep this topic in mind for future vids :)

[@user-bs4nd1eb6d]

@@AccountingStuffThank You James

[@bisayangtrader1965]

Hello. Can you make Financial ratios for a Supermarket Business?

[@AccountingStuff]

Thanks for your request!

[@alyssalindsay287]

can you please do a video on multi step, classified multi step and single step income statement formats?

[@AccountingStuff]

Thanks for your request!

[@NANDURISAISURYAVISHNUPRIYA]

Can you please make a series on consignment accounting...... It would really help, I love your videos but it's sad that I so desperately want to learn consignment but your channel doesn't have them

[@AccountingStuff]

Thanks for your request!

[@rutujapatil1805]

Video on bad debts and allowance for receivables plsss

[@AccountingStuff]

Thanks for your request!

[@StanFranssen]

Another informative video, thanks! So it looks like Edison Motors is actually a real company, it's located in BC and it will manufacture off-highway hybrid semi trucks. Great minds think alike eh? :)

[@AccountingStuff]

Haha, what are the chances?

[@Ali-Mutahir]

Can you make a video on Special Journals

[@AccountingStuff]

Thanks for your request!

[@kenesufernandez1281]

❤

[@AccountingStuff]

❤

[@mayfly9319]

❤❤❤❤❤❤❤❤

[@AccountingStuff]

❤

[@roialnet]

Why Edison? He undermined Tesla.

[@AccountingStuff]

It's just a made up example

[@mohammedwaheeduddinafsar9482]

Humko poochhne ka hak hai ke Allah ka Diya hua sofe mein Allah ki Rashi kya hai ya nahin aur yah halal hai ya haram hai puchenge kyunki hamara Imaan Allah uske rasulpur hai Sare khajane allah ke pass hai jameen Aasman female Aasman ke vah fakir ko Badshah banaa Badshah ko fakir bhi banaa sakta hai yah uski Shan hai mohalla ke raste per hi chalte Hain yad rakho Allah ki yad mein jilon Ko sukun milta hai La ilaha illallah muhammadur rasulullah