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What is gross profit 

The Finance Storyteller
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27 авг 2024

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Комментарии : 38   
@TheFinanceStoryteller
@TheFinanceStoryteller 3 года назад
Enjoyed this video? Then please subscribe to the channel, and watch the video on Cost Of Goods Sold next: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-jEUnCe_9I-s.html
@princejag
@princejag 3 года назад
Man, you always surprises me with the unexpected.
@TheFinanceStoryteller
@TheFinanceStoryteller 3 года назад
Haha, happy to hear that! :-)
@claraho5708
@claraho5708 3 года назад
I love your videos, they are so clear, well explained and well designed. I can guarantee you that if I had to learn these concepts just from books - it wouldn't sink in! Thank you!!!!
@TheFinanceStoryteller
@TheFinanceStoryteller 3 года назад
Wonderful to hear that, Clara!!!! Please subscribe, and share the channel with friends and colleagues. Let me know if there are any topics that you think I should add a video on.
@rahabshimaluwani6910
@rahabshimaluwani6910 2 года назад
Wow....your explanation has really helped me alot... Thank you sir.
@TheFinanceStoryteller
@TheFinanceStoryteller 2 года назад
You are most welcome, Rahab! Thank you for watching and commenting.
@Vlad.A_PT
@Vlad.A_PT Год назад
Thank you, so much! 🙏🏼
@TheFinanceStoryteller
@TheFinanceStoryteller Год назад
Any time! 😊 Happy to help!
@konstancyja82
@konstancyja82 3 года назад
Wow 🤩 i like the small facts you share
@TheFinanceStoryteller
@TheFinanceStoryteller 3 года назад
You're welcome! It's as much about how to define and calculate things, as it as about what the outcome of your calculation means...... 😎
@neelmoradiya1389
@neelmoradiya1389 Год назад
Gross profit = revenue - cost of goods sold
@TheFinanceStoryteller
@TheFinanceStoryteller Год назад
Correct! Or if you are selling services, then it is revenue minus cost of services sold.
@neelmoradiya1389
@neelmoradiya1389 Год назад
@@TheFinanceStoryteller i was just taking notes
@uranvela7548
@uranvela7548 Год назад
Kudos man!
@TheFinanceStoryteller
@TheFinanceStoryteller Год назад
Happy to help!!!
@mohsinbaig2195
@mohsinbaig2195 3 года назад
Will you tell me that you have a video on Bad and Doubtful Debts? Bank Reconciliation? If yes, then tell me the name of Playlist kindly I can't find it there are so much Playlists in your channel and I wanna learn that topics asap. Thanks 😊
@TheFinanceStoryteller
@TheFinanceStoryteller 3 года назад
Hello! I do have a video on bad debt accounting (as well as related topics like DSO) in this playlist: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-q7Whr_A4drE.html I haven't covered bank reconciliation in any video yet, but there are plenty good quality finance channels that have!
@mohsinbaig2195
@mohsinbaig2195 3 года назад
@@TheFinanceStoryteller OK I got it. Thanks a lot ✨♥️
@guiguiba2005
@guiguiba2005 3 года назад
What if a company has two types of revenue (example: services in general and resale of hardware). I cannot simply divide cogs by total revenue, right? I would have to divide only whats related to resale/cogs
@TheFinanceStoryteller
@TheFinanceStoryteller 3 года назад
Correct. Try to account for the COGS for each "business unit" separately, then calculate gross profit amount and divide by revenue amount.
@aishamursalova1824
@aishamursalova1824 7 месяцев назад
In a period, sales are $140,000, purchases $75,000 and other expenses $25,000. What is the figure gross profit for the year?
@TheFinanceStoryteller
@TheFinanceStoryteller 7 месяцев назад
That sounds like you are posting your homework question for me to solve.
@aishamursalova1824
@aishamursalova1824 7 месяцев назад
@@TheFinanceStoryteller Yea, u got it right🙃
@moflovemayimbe4177
@moflovemayimbe4177 3 года назад
Hey sir do you know Equity corporation group
@TheFinanceStoryteller
@TheFinanceStoryteller 3 года назад
Nope, have not heard of them.
@videospride8439
@videospride8439 3 года назад
Wtf 81% gross profit margins for tech company. I never knewed it.
@TheFinanceStoryteller
@TheFinanceStoryteller 3 года назад
Yep! Facebook at 81% Gross Margin, 38% Operating Margin, and 34% ROS, in 2020. By comparison, software company Adobe made 87% Gross Margin in 2020 (higher than Facebook), and 33% Operating Margin (lower than Facebook).....
@videospride8439
@videospride8439 3 года назад
@@TheFinanceStoryteller thanx for telling
@TheFinanceStoryteller
@TheFinanceStoryteller 3 года назад
@@videospride8439 You're welcome! I find the "P&L footprint" of companies fascinating, and have made a video comparing GM% and OM% of 4 very different types of company: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-VCMJzG1AaXA.html
@hilalahmed1005
@hilalahmed1005 3 года назад
Finance story teller do you have email?
@TheFinanceStoryteller
@TheFinanceStoryteller 3 года назад
Yes, see the "About" tab on my channel page.
@sik2185
@sik2185 2 года назад
THE COST ARE VAT INCLUDED? THE SALES ARE VAT INCLUDED? NOBODY CANT EXPLAIN
@TheFinanceStoryteller
@TheFinanceStoryteller 2 года назад
Both excluding VAT, assuming the business is VAT registered.
@sik2185
@sik2185 2 года назад
@@TheFinanceStoryteller I buy wine for £700 ex VAT and I sell for £1200 Inc Vat. So how much is the gross profit?
@TheFinanceStoryteller
@TheFinanceStoryteller 2 года назад
@@sik2185 That depends on the VAT rate. If that is 20% for example, then you would sell ex VAT for 1000 GBP. That would be 30% gross profit (300/1000).
@sik2185
@sik2185 2 года назад
@@TheFinanceStoryteller ok that's fine. But the important I want to know if gross profit has not VAT included
@TheFinanceStoryteller
@TheFinanceStoryteller 2 года назад
@@sik2185 Excluded. Use the 700 GBP and 1000 GBP in your example.
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