How do you calculate your net profit margin?

#shorts #finance #entrepreneur #howto #business

[@spinelessdevil]

Gotta spend money to make money

[@TwoTeachers]

Amen 🙏🏻

[@noel7777noel]

Taking out a loan for a pizza oven is very different than taking out a loan for the margins from a pizza oven. "Money makes money" is taking out a second loan on the margins of the pizza oven. The first loan is for the pizza oven. "Money makes money" is not known for a pizza oven loan. Normal supply and demand doesn't have profits avaliable to investors in the math equation.

[@fashion_of_design]

Thanks! Helped a lot bro

[@TwoTeachers]

Cheers pal. Glad it helped 👍

[@vanessagalleguillos-zv5kl]

Thank you so much for this

[@TwoTeachers]

No problem, glad we could help 😁

[@jkj1459]

NET-PROFIT MARGIN

[@TwoTeachers]

CORRECT

[@asfi.]

19% tax on 35000 its means your profit 29000

[@TwoTeachers]

👍

[@DailyWord3832]

Also we can raise PM by either increase revenue or decrease expenses.

[@TwoTeachers]

Very true, great point!

[@HakunaMatata-uc1tp]

PM?

[@user-hc4zw4fe1k]

It's amazing here I love it

[@TwoTeachers]

I'm glad you like it

[@uiyg6gd]

Thank you 💕

[@TwoTeachers]

You’re welcome 😁

[@louietoltolvlog9699]

Excel will calculate automatically

[@TwoTeachers]

Good point but it is useful to understand what it is calculating 🤷‍♂️

[@GOAL-ENTPRENUER-in5dh]

One doubt to find net profit we minus all expenses but what about operating profit 🤔🤔🤔i am confused 😕

[@TwoTeachers]

That's a great question, "Operating profit is the amount of the gross profit minus operational costs.Net profit is the total amount left over after the business has accounted for all deductions, including interest and taxes. Gross and net profit are standard inclusions on an income statement, but businesses commonly leave out their operating profit." Check out this link for more information, hope this helps. www.indeed.com/career-advice/career-development/gross-vs-net-vs-operating-profit#:~:text=Operating%20profit%20is%20the%20amount,deductions%2C%20including%20interest%20and%20taxes.

[@GOAL-ENTPRENUER-in5dh]

@@TwoTeachers ok thanks Love from India 🇮🇳🇮🇳🇮🇳🇮🇳🇮🇳🇮🇳

[@gunfungaming3235]

HOW TO CALCULATE REVENUE FROM OPERATION WHEN TOTAL REVENUE AND OPERATING EXPENSES ARE GIVEN

[@gunfungaming3235]

SHOULD WE IGNORE OPERATING EXP AND CONSIDER TOTAL SALES

[@TwoTeachers]

To calculate your revenue you don't need to know your expenses, you only include expenses in your calculation if you are trying to calculate profit. Hope this helps.

[@emperor_napoleon]

Where did you get the net profit? And also the sales

[@TwoTeachers]

You get them from an income statement created by the business 😁

[@emperor_napoleon]

@@TwoTeachers ohh okay but is the net profit from (gross profit - total expenses)?

[@mrkurleygunna]

So lets say I made $400 from a sell for the month and the cost of good was $318 do I subtract the cost of goods then subtract the taxes from the $82 left from my profit or subtract the taxes I pay from the $400?

[@TwoTeachers]

you subtract the cost of goods sold. Then any expenses from the $82 you have left. Then you pay taxes on the net profit 👍

[@noulafrantz8589]

Is the net profit is that go to the company or the business owner

[@TwoTeachers]

Great question. It can be paid as a dividend to the owners of the company or the business can reinvest it to help the company grow.

[@noel7777noel]

​​@@TwoTeachersin normal supply and demand math chart, the margins go to reinvest the "profits" (AKA margins) to fix the infrastructure to fix the supply shortages. Veblin goods supply and demand math chart the "profits" are available to the owners. Walt Disney didn't have the right to ride of in the sunset with Snow White's profits. He used those profits to fund Walt Disney World. Than the profits from Walt Disney World to build Space Mountain.

[@venkatesh3484]

Then how to find net profit before tax

[@TwoTeachers]

it's operating profit - interest (and exceptional costs) = net profit before tax

[@user-cy8xm4ip6g]

Which kind of sales gives you 3x profit.. I mean cost of goods = 25k. Gross profit = 75K.. What u are selling?? Give example

[@TwoTeachers]

This video is called an example and it gives you simple hypothetical figures that are easy to use so that you can understand the calculation. I am not selling anything in the video as it is a fictional example 👍

[@user-hc4zw4fe1k]

Can bring a question here

[@TwoTeachers]

Yes of course you can...

[@alexi3473]

That's not net profit, that's gross. Net is after tax.

[@TwoTeachers]

On a statement of profit and loss, a business will state both net profit followed by net profit after tax.

[@deaddrink9150]

What is after net profit ?

[@TwoTeachers]

Great question, it's net profit after tax is taken into account.

[@daberechukwujudeokwueze9675]

song name pls

[@TwoTeachers]

Great question but we don’t know sorry

[@georgekamel4569]

Silly,just put cost of goods under the Expenses dahhhh

[@TwoTeachers]

Great idea, but that would make the gross profit figure incorrect.

[@simitae2301]

How to calculate a percentage of comparative statement of profit and loss It's really hard for me to find percentage

[@TwoTeachers]

Determine the Initial Value (Old Value): This is the starting value of the item you're comparing. For example, if you're comparing the profit from last year, this would be the profit from last year. Determine the Final Value (New Value): This is the ending value of the item you're comparing. Using the same example, if you're comparing the profit from last year to this year, this would be the profit from this year. Calculate the Difference (Change): Subtract the initial value from the final value. This gives you the absolute change in value. Change = Final Value - Initial Value Calculate the Percentage Change: Divide the absolute change by the initial value and multiply by 100 to get the percentage change. Percentage Change = (Change / Initial Value) * 100 Let's illustrate this with an example: Suppose the profit last year (Initial Value) was $50,000 and the profit this year (Final Value) is $70,000. Initial Value (Old Value): $50,000 Final Value (New Value): $70,000 Change = $70,000 - $50,000 = $20,000 Percentage Change = ($20,000 / $50,000) * 100 = 40% So, the profit increased by 40% compared to last year. If the final value is less than the initial value, the percentage change will be negative, indicating a decrease in profit.

[@rehaanhussainking7208]

How to find let loss?

[@TwoTeachers]

Your net loss will show at the bottom of the statement once you have deducted your expenses. It will be a negative figure if you are making a loss.

[@sammajumder8521]

If net profit not given then

[@TwoTeachers]

If you have gross profit and expenses then you could calculate the net profit by deducting the expenses from gross profit. Otherwise if you don’t have net profit then you can’t calculate net profit margin.

[@Sivanmessi]

Cross profit mean?

[@TwoTeachers]

Check out this video, it will explain gross profit to you Net Profit and Gross Profit | Formulas, Margin Calculations and How to Interpret Figures Explained kzbin.info/www/bejne/en6ahaSin7qom9U

[@GOAL-ENTPRENUER-in5dh]

Gross*

[@mahekfaldu]

Stupidity at peak, where is purchase???😂

[@TwoTeachers]

Cost of goods sold = the starting inventory + purchases - ending inventory.

[@dwaramaswani2608]

Wrongly informed about net profit

[@TwoTeachers]

That’s a shame

[@Alex-eh9bm]

Net sales or gross sales

[@TwoTeachers]

Gross sales

[@RoriRebel]

Gross sales obviously because below he has his expenses

[@techstudy22]

Madarindia

[@TwoTeachers]

👍

[@laydialayjos8960]

Pura pendejada...

[@TwoTeachers]

😁