Gross Margin vs Operating Margin - Understand once and for all!

[@scottpiebenga4108]

Exactly the type of explanations I've been looking for. Thanks!

[@CorporateFinanceAcademy]

Great! What other explanations are you looing for in the finance world?

[@INFOMINE10]

Sir thank you so much for explanation but when there is margin, there is division (a/b)

[@alexandervlahos4243]

Thanks, great explanation

[@CorporateFinanceAcademy]

Thank you - Make sure you subscribe for more!!

[@arindam_chowdhury]

Well explained video. Thanks! ❤

[@CorporateFinanceAcademy]

Thank you!

[@SNS.RaviKumar]

Quality content

[@CorporateFinanceAcademy]

Thank you!!

[@UNCLETQB]

Technically gross profit is NOT gross margin. Gross profit = Revenue-COGS. However, Gross margin= Gross profit/Revenue. Gross profit is the actual dollar amount, whereas gross profit Margin is a percentage.

[@CorporateFinanceAcademy]

That is perhaps a textbook definition but in my 20 years across public, private, and PE (including working at portcos for the top PE firms)…. They are used interchangeably. If people want the percentage they will say what’s the gross profit % or gross margin %….

[@AdityaRaj-jd8ib]

helpful. thanks.

[@CorporateFinanceAcademy]

great - are there other videos you would like to see?

[@allproroofing_grp]

Took forever