Search results “Analysis profitability of a company”
Ratio Analysis - Profitability
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: 80014 tutor2u
Profitability ratio analysis
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: 14710 Bernd Meyer
Profitability Ratio Analysis: Financial Ratio Analysis Explained
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: 52927 AccoFina
Profitability Ratios - Gross, Net, Operating Profit Margin in Hindi (2018)
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: 26655 Asset Yogi
Revenue, Profits, and Price: Crash Course Economics #24
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: 433133 CrashCourse
How to do a Customer Profitability Analysis
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: 12213 Paulo Calisto
The Economics of Uber
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: 1112641 PolyMatter
Startup CEO: Growth vs. Profitability
(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]
Case Interview Solution - Profitability Problem (Chewing Gum Manufacturer)
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.
EBIT and EBITDA explained simply
What do EBIT and EBITDA mean? How to calculate EBIT and EBITDA? Why are the financial metrics EBIT and EBITDA important to measure the financial success of a company? Why do some companies use EBIT (Earnings Before Interest and Taxes) and others EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)? What is the purpose of the financial statements of a company: income statement, balance sheet, and cash flow statement? What are EBIT and EBITDA used for in business? Both EBIT and EBITDA are measures of profitability, along with terms like gross profit and net income. They are reported in the income statement (or "Profit & Loss statement", "P&L"), an overview of the profit or income that you generate during a period. To calculate EBIT and EBITDA, many companies would present their income statement in the following way: Revenue minus Cost Of Sales equals Gross Profit. Gross Profit minus S,G&A and R&D equals EBITDA. EBITDA minus Depreciation & Amortization equals EBIT. EBIT minus Interest and Taxes equals Net Income. Please be aware that different companies use different terminology, so what you see here might be different from what your company is using. EBIT is Earnings Before Interest and Taxes. Interest is excluded, as it depends on your financing structure. How much did you borrow, and at what interest rate? Taxes are excluded, because it depends on the geographies that you work in. EBITDA is Earnings Before Interest, Taxes, Depreciation and Amortization. Just like EBIT, it excludes Interest and Taxes. Furthermore, depreciation and amortization are excluded, because they depend on the historical investment decisions that a company has made, not the current operating performance. EBITDA is a meaningful metric for capital-intensive industries. In the video, we look at an example of using EBIT and EBITDA in financial reporting, by reviewing the 2015 annual report of the Maersk Group (CPH: MAERSK-B), a company headquartered in Denmark and operating globally. What do business and finance people use EBITDA for? Besides being a metric to represent ongoing operating performance, it is often mentioned as part of M&A (or Mergers & Acquisitions) news. A quick-and-dirty way to calculate the value of a company is by using a multiple of EBITDA. This can help you to get to a ballpark number, but I would advise to always do a more thorough analysis and a more thorough valuation of a company, as there are a lot of “ifs” connected to using an EBITDA multiple… you are assuming the profitability and the industry does not change, you exclude the impact of working capital (which could go up dramatically for a fast-growing company), and you exclude the cash that you need for capital expenditures on an ongoing basis for the company. Related videos in the Finance Storyteller series: EBITDA example https://www.youtube.com/watch?v=7e_6qEo1grI EBIT-EBITA-EBITDA https://www.youtube.com/watch?v=nImp51zYcy4 Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Views: 162524 The Finance Storyteller
Profitability Ratio Analysis | Accounting | Chegg Tutors
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: 1601 Chegg
Understanding Profit Margin
http://www.MDTSeminar.com Profit margin is part of a category of profitability ratios calculated as net income divided by revenue, or net profits divided by sales. Net income or net profit may be determined by subtracting all of a company’s expenses, including operating costs, material costs (including raw materials) and tax costs, from its total revenue. Profit margins are expressed as a percentage and, in effect, measure how much out of every dollar of sales a company actually keeps in earnings. A 20% profit margin, then, means the company has a net income of $0.20 for each dollar of total revenue earned. While there are a few different kinds of profit margins, including “gross profit margin,” “operating margin,” (or "operating profit margin") “pretax profit margin” and “net margin” (or "net profit margin") the term “profit margin” is also often used simply to refer to net margin. The method of calculating profit margin when the term is used in this way can be represented with the following formula: Profit Margin = Net Income / Net Sales (revenue) Other types of profit margins have different ways of calculating net income so as to break down a company’s earnings in different ways and for different purposes. Profit margin is similar but distinct from the term “profit percentage,” which divides net profit on sales by the cost of goods sold to help determine the amount of profit a company makes on selling its goods, rather than the amount of profit a company is making relative to its total expenditures. Rarely can a company’s individual numbers (like revenue or expenditures) indicate much about the company’s profitability, and looking at the earnings of a company often doesn't tell the entire story. Increased earnings are good, but an increase does not mean that the profit margin of a company is improving. Profit margin is a useful ratio and can help provide insight about a variety of aspects of a company’s financial performance. On a rudimentary level, a low profit margin can be interpreted as indicating that a company’s profitability is not very secure. If a company with a low profit margin experiences a decline in sales, its profit margin will decline even further, leading to a very low, neutral or even negative profit margin. Low profit margins may also reveal certain things about the industry in which a company operates or about broader economic conditions. For example, if a company’s profit margin is low, it may indicate that it has lower sales than other companies in the industry (a low market share) or that the industry in which the company operates is itself suffering, perhaps because of waning consumer interest (or increasing popularity and/or availability of alternatives) or because of hard economic times or recession. Profit margin may also indicate certain things about a company’s ability to manage its expenses. High expenditures relative to revenue (i.e. a low profit margin) may indicate that a company is struggling to keep its costs low, perhaps because of management problems. This is an indication that costs need to be under better control. High expenditures may occur for many reasons, including that the company has too much inventory relative to its sales, that it has too many employees, that it is operating in spaces that are too large and thus is paying too much in rent, and for many other reasons. On the other hand, a higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors. Profit margin can also illuminate certain aspects of a company’s pricing strategy. For example, a low profit margin may indicate that a company is underpricing​ its goods. Though profit margin is a helpful and popular ratio for gauging a company’s profitability, like any financial metric or ratio it comes with certain accompanying limitations that any investor should consider when considering a company’s profit margin. While profit margin can be very useful for comparing companies with one another, one should only use profit margin to compare companies within the same industry, and ideally with similar business models and revenue numbers as well. Companies in different industries may often have wildly different business models, such that they may also have very different profit margins, thereby rendering a comparison of their profit margins relatively meaningless.
Financial Statement Analysis #5: Ratio Analysis - Profitability Measures
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: 16345 Subjectmoney
Financial analysis made easy (and quick!)
Jean Pousson from Board Evaluation gives a short way to financially assess your business. Find us online: http://bit.ly/1okZTwN LinkedIn: http://linkd.in/1mgjvQe Twitter: http://bit.ly/1g0LxPq
Views: 52269 boardevaluation
Customer Profitability Analysis (Activity Based Costing)
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: 3018 Edspira
Financial Ratios & Analysis - Explained in Hindi
An introduction to Financial Ratio Analysis in hindi. Financial ratios like profitability ratios, liquidity ratios, solvency ratios (leverage or debt ratios), activity ratios (efficiency ratios) and valuation or market ratios are analyzed before making an investment decision or to judge the financial health of a company. Few examples are discussed for each type of ratio for eg. profit margin, current ratio, debt ratio, inventory turnover ratio, earnings per share (EPS) and P/E ratio. Related Videos: Profitability Ratios - Gross, Net, Operating Profit Margin : https://youtu.be/pHgiuO2ZYoU Liquidity Ratios & Solvency Ratios: https://youtu.be/ZMSW9BYb_Yo Return on Investment (ROI): https://youtu.be/ij7y5e2MVG4 Earnings Per Share (EPS): https://youtu.be/SDXp64flfJI इस वीडियो में जानिए फाइनेंसियल रेश्यो एनालिसिस का हिंदी में परिचय। फाइनेंसियल रेश्यो जैसे की प्रोफिटेबिलिटी रेश्यो, लिक्विडिटी रेश्यो, सॉल्वेंसी रेश्यो (लिवरेज या डेब्ट रेश्यो), एक्टिविटी रेश्यो (एफिशिएंसी रेश्यो) और वैल्यूएशन या मार्केट रेश्यो को एनालाइज़ किया जाता है कोई भी निवेश का निर्णय लेने से पहले और किसी कंपनी के फाइनैंशल हेल्थ को जज करने के लिए भी किया जाता है। हर एक प्रकार के रेश्यो के लिए कुछ उदाहरणों पर चर्चा की गयी है जैसे: प्रॉफिट मार्जिन, करंट रेश्यो, डेब्ट रेश्यो, इन्वेंटरी टर्नओवर रेश्यो, अर्निंग्स पर शेयर (EPS) और P/E रेश्यो। Share this Video: https://youtu.be/CZscpOND3Vs 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 financial ratios? How financial ratio helps you to understand the financial health of a company? What is the concept of financial ratios? How to analyze a company's financial health using financial ratios? How many types of financial ratios are used for the financial status of a company? What is the meaning of different financial ratios? How to calculate different financial ratio? How to do financial ratio analysis? What is the concept of financial ratio analysis? Which financial ratios can be used to analyze the financial status of a company? What is the basic concept of profitability ratios, liquidity ratios, solvency ratios, activity ratios and market ratios? 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 Instagram - http://instagram.com/assetyogi Pinterest - http://pinterest.com/assetyogi/ Linkedin - http://www.linkedin.com/company/asset-yogi Google Plus – https://plus.google.com/+assetyogi-ay Hope you liked this video in Hindi on “Financial Ratios & Analysis”.
Views: 39173 Asset Yogi
Tesla's Profitability Vs Other Automakers (Gross Margin Analysis)
Tesla's gross margins are already higher than Mercedes, BMW, etc ... and that's before legacy auto co's take a hit on profits to start building EVs. Tesla's commitment to robotic automation in its factory and vertically integrating battery production is starting to pay off big time. In this episode we present evidence (gross margins) for why Tesla's manufacturing strategy is winning. LINK - Google doc w/ all my gross margin calculations & sources: https://docs.google.com/spreadsheets/d/1MznsaZN9WGTN60EJaFQC33rdBXhz8wt4_xh1OFXc8x0/edit?usp=sharing LINK - Tesla Financials Q2 '17: http://files.shareholder.com/downloads/ABEA-4CW8X0/4816704198x0x952053/F302D22F-FC9B-41A3-9534-60D0032673CC/TSLA_Update_Letter_2017-2Q.pdf LINK - Elon Musk says marginal cost of Model S is $30K: https://electrek.co/2017/05/15/tesla-kill-auto-industry-elon-musk-manufacturing-spacex-cto/ LINK - Elon Musk's incentive package from 2012: https://www.sec.gov/Archives/edgar/data/1318605/000119312513158904/d506419ddef14a.htm LINK - Tesla reducing pricing of Model X: https://electrek.co/2017/08/04/tesla-model-x-price-performance-options/ LINK - GM losing $9K on every Bolt: https://electrek.co/2016/11/30/gm-chevy-bolt-ev-loss-before-zev-credit/ LINK - Bob Lutz thinks the Bolt will lose money: https://cleantechnica.com/2015/12/27/bob-lutz-thinks-chevy-bolt-will-lose-gm-money/ LINK - Fiat CEO says he's losing $500K on every 500e: https://www.bloomberg.com/news/articles/2017-10-02/fiat-chrysler-ceo-focuses-on-goals-amid-doubts-on-e-cars-deals LINK - Daimler CEO says EQ brand only to carry half the margins of ICE cars: https://www.reuters.com/article/us-daimler-strategy-costs/electric-cars-only-half-as-profitable-at-first-daimler-idUSKCN1BM0ZV LINK - Pics of robots in Tesla factory: https://electrek.co/2017/04/25/tesla-model-3-robot-production-line-pictures/ LINK - Tesla Gigafactory: https://www.tesla.com/gigafactory Music by Marko: https://soundcloud.com/markothedon & Fritz Carlton: https://soundcloud.com/fritzcarlton HyperChange Patreon: http://patreon.com/hyperchange HyperChange TV Main Website: http://hyperchangetv.com HyperChange Instagram: http://instagram.com/Hyperchange HyperChange Twitter: https://twitter.com/HyperChangeTV HyperChange Facebook: https://www.facebook.com/HyperChange/ Disclaimer: This video is purely my opinion and should not be regarded as factual information. I am not a financial advisor. This is not a recommendation to buy or sell securities. Do not assume any facts and numbers in this video are accurate. Always do your own due diligence. As of 10/11/2017 HyperChange host (Galileo Russell) is invested in shares of Tesla (TSLA).
Views: 3950 HyperChange TV
Financial Statement Analysis #1: Common Size Statements and Operation Analysis
http://www.subjectmoney.com http://www.subjectmoney.com/articledisplay.php?title=Financial%20Statement%20Analysis%20and%20Ratios In this lesson we are introducing you to financial statement analysis. We cover common size standardized statements, we cover measures of income and also financial ratios that can be used to analyze the way a company operates along with other features such as the companies financial structure. Please be sure to subscribe, rate, share and don't forget to visit our website at http://subjectmoney.com https://www.youtube.com/user/Subjectmoney https://www.youtube.com/watch?v=TjZCpmtg1Kw
Views: 47777 Subjectmoney
Net Profit Margin | How to Improve Profitability | Business Management | Business Growth Strategy
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: 2965 Tim Stokes
Profitability Ratio Analysis-Operating profit margin, Net profit margin, ROCE & ROE
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: 423 Fintapp
Calculating Budget Variances
In this video, we explain and illustrate with a simple example the concept of budget variances.
Views: 33696 tutor2u
3 Minutes! Financial Ratios and Financial Ratio Analysis Explained (Quick Overview)
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: 1281880 MBAbullshitDotCom
EPS Earnings Per Share Explained in 11 minutes - Financial Ratio Analysis Tutorial
Clicked here http://www.MBAbullshit.com/ and OMG wow! I'm SHOCKED how easy.. No wonder others goin crazy sharing this??? Share it with your other friends too! Let's say that ABC Company's Net income last year is one thousand dollars and there are one hundred shares outstanding. What is its earnings per share? Well its super simple, earnings per share is simply the total net income last year of the whole company divided by the number of shares outstanding. Now, if you do this equation you'd find that the earnings per share is exactly ten dollars, a nice simple easy round number. Now this is the most easy part of financial ratio which is to compute the actual number. What's more important is what does this mean? This means that every share earns ten dollars a year in profit, or last year every share earned ten dollars a year in profit. Meaning, you get the whole profit of the company and you divide that by the total number of shares. Then every shareholder, assuming every shareholder owns exactly one share, then every shareholder gets ten dollars a year in profit. Now I'd like to stress that this is ten dollars a year in profit not in dividend. EPS Earnings Per Share in 11 minutes - Financial Ratio Analysis Tutorial http://www.youtube.com/watch?v=2bbsAsnX1nM
Views: 101392 MBAbullshitDotCom
Comparable Company Analysis (CCA) Tutorial
In this tutorial, you’ll learn all about Comparable Company Analysis (CCA), also known as “Public Comps” or “Comps” – including why it works, what it tells you, and how to complete the process efficiently without access to expensive subscription services. https://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" Table of Contents: 1:28 What Does “Comparable Company Analysis” Mean? 3:21 How Does the Process Work? 13:09 How Can You Complete a Comparable Company Analysis Cheaply and Quickly? 17:24 What Makes This Harder in Real Life? 19:26 Recap and Summary Resources: https://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-21-Comparable-Company-Analysis.xlsx https://youtube-breakingintowallstreet-com.s3.amazonaws.com/107-21-Comparable-Company-Analysis-Slides.pdf Lesson Outline: The basic idea is that you calculate a company’s “Implied Value” – what it should be worth – based on what other, similar companies are worth. For example, Company A has an Enterprise Value of $1,000, with an EBITDA of $100 and, therefore, an EV / EBITDA of 10x. Other, similar companies in the market have EV / EBITDA multiples between 11x and 13x. Therefore, Company A should also trade at an EV / EBITDA of 11x to 13x, and its Enterprise Value should be between $1,100 and $1,300. Unlike a DCF, which is mostly based on your views of Company A and its long-term prospects, Comparable Company Analysis (“CCA”) is based on the market’s views of this industry. It’s a supplemental methodology since its usefulness depends on how correct the market is. The Process To value a company with CCA, follow these steps: Step 1: Select an appropriate set of comparable public companies. Step 2: Determine the metrics and multiples you want to use. Step 3: Calculate the metrics and multiples for all the companies. Step 4: Apply the median or 25th or 75th percentile multiples from the set to your company to estimate its Implied Equity Value and Enterprise Value. You normally screen companies by geography, industry, and financial “size,” and you aim for around 5-10 companies in the set. An example screen would be “U.S.” for geography, “Steel Manufacturers” for industry, and “revenue between $1 billion and $20 billion” for size. You want the companies to have similar Discount Rates and Cash Flows so that differences in the multiples come from differences in Growth Rates. Normally, you want 1 sales-based metric and 1-2 profitability-based metrics and their corresponding multiples, over both historical and projected periods. Examples might be Revenue, EV / Revenue, and Revenue Growth; EBITDA, EV / EBITDA, and EBITDA Growth; and Net Income, P / E, and Net Income Growth. You calculate each company’s Equity Value and Enterprise Value first, get the historical figures from annual and quarterly reports, and get the projected figures from online sources such as Finviz or Zacks or equity research reports. Then, you calculate the min, 25th percentile, median, 75th percentile, and max for each multiple and multiply them by the appropriate company figures (e.g., LTM EBITDA by the median LTM EV / EBITDA multiple from the comparables). You then back into Implied Equity Value, if necessary, and divide by the share count to calculate the Implied Share Price. Completing the Analysis Quickly and Cheaply You can use Finviz, Zacks, or Motley Fool to find companies and basic financial information. Search by the name of the company you’re valuing on these sites and then click through to “Industry” section to find peers. Click through to “Financial Highlights” or “Statements” to find the projected numbers, and for EBITDA and similar metrics, make estimates by applying the projected EPS growth rate to the historical EBITDA figures to calculate projected EBITDA. Real-Life Complexities This analysis is often more complicated and time-consuming in real life because you may have to search through each company’s filings manually and look for the financials, you might have to determine whether or not an expense is non-recurring, and you may have to “calendarize” the financials if, for example, one company’s fiscal year ends on June 30th but another’s ends on September 30th.
Ratio Analysis. Liquidity ratios, solvency ratios, profitability ratios.
I have discussed about liquidity, profitability, solvency and and activity ratios in this video
Views: 32398 Amjad Niaz
Key Financial Metrics and Ratios: ROA, ROE, and ROIC
Learn key financial metrics & ratios to analyze companies financial statements. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You’ll learn about the key metrics and ratios used to analyze companies’ financial statements, including Return on Equity (ROE), Return on Assets (ROA), and Return on Invested Capital (ROIC), as well as Inventory Turnover, Receivables Turnover, Payables Turnover, the Current Ratio, and the Asset Turnover Ratio. Table of Contents: 1:15 Why Metrics and Ratios Matter 4:58 Return on Equity (ROE), Return on Assets (ROA), and Return on Invested Capital (ROIC) 10:50 Asset-Based and Turnover-Based Ratios 14:40 Interpretation of Key Metrics and Ratios for Wal-Mart, Amazon, and Salesforce 19:32 Why the Key Metrics and Ratios Are Sometimes Not That Useful Why Metrics and Ratios? They let you evaluate and compare different companies, and see why one company might be worth more (higher valuation multiple) than others. They let you answer questions such as: How much equity is required to generate a certain amount of after-tax profit (Net Income)? How much in assets is required to generate a certain amount of after-tax profit (Net Income)? How much total capital is required to do this? How dependent is a company on its assets? How liquid is the company? Can it meet its obligations? How quickly does it sell all its Inventory, pay its outstanding invoices, and collect its receivables? ROA, ROA, and ROIC Return on Equity (ROE) = Net Income / Average Shareholders’ Equity Return on Assets (ROA) = Net Income / Average Assets Return on Invested Capital (ROIC) = NOPAT / (Total Debt + Equity + Other Long-Term Funding Sources) Return on Equity (ROE): How efficiently is a company using its equity to generate after-tax profits? Return on Assets (ROA): How well is a company using its assets / how dependent is it on them? Return on Invested Capital (ROIC): How well is a company using ALL its capital, or how much capital is required to grow its business? Here, Wal-Mart easily ranks #1 in all these metrics because it has a very high ROE of 20-25%, an ROA of close to 10%, and an ROIC of 13-14%; for Amazon and Salesforce, these numbers are negative or close to 0%. Asset-Based Ratios and Turnover-Based Ratios Asset Turnover Ratio = Revenue / Average Assets How dependent is a company on its asset base to generate revenue? Current Ratio = Current Assets / Current Liabilities How liquid is a company? Can it use its short-term assets to repay its short-term obligations, if required? Inventory Turnover = COGS / Average Inventory How many times per year does a company sell off all its Inventory? Receivables Turnover = Revenue / Average AR How quickly does a company collect its receivables from customers that haven’t paid in cash yet? Payables Turnover = COGS / Average AP (*) How quickly does a company submit cash payment for outstanding invoices? Interpretation of Figures for Wal-Mart, Amazon, and Salesforce On the surface, many of these metrics make Wal-Mart seem like a "better" company - much higher ROE, ROA, and ROIC, and Amazon is negative on some of those! Wal-Mart tends to have higher margins as well, and shows more consistency with those margins. Similar inventory management, but Wal-Mart collects from customers and pays invoices much more quickly than Amazon. Wal-Mart is levered a bit more heavily, though. And yet… Amazon is a much more expensive stock, or at least it was at this point in time, and the market values it much more highly based on metrics such as the P / E ratio. At the time of this analysis, Wal-Mart P / E Ratio = 16x, and Amazon P / E Ratio = 456x! How could that be possible? Is Amazon really nearly 30x as valuable as Wal-Mart with WORSE metrics? Answer: The "Revenue Growth" line tells the whole story here. You're comparing 2 very different companies – one is a mature, predictable, mostly slow-growing firm, and one is growing revenue at 20-30% per year, despite revenue in the tens of billions already. Admittedly, Amazon's valuation still seems ridiculous, but it's not that surprising it's valued more highly than Wal-Mart, given that it's growing 20-30x more quickly. The Bottom-Line: These metrics are MOST useful when comparing companies of similar sizes, growth rates, and margins – not as useful when you're comparing a high-growth company to a stable, mature firm. RESOURCES http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Key-Financial-Metrics-Ratios.xlsx http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Key-Financial-Metrics-Ratios.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Amazon-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Salesforce-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Walmart-Financial-Statements.pdf
Profitability Analysis
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: 5495 VisualignCorp
Finance: Liquidity Ratios Explained
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: 121586 tutor2u
Why isn't Tesla broke?
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: 1616552 The Rest Of Us
Accounting ratios Compare two companies
Comparing two companies: Revision of some simple ratios
Views: 23238 david hopcroft
Profitability Analysis
Comprehensive financial statement analysis here: https://www.finstanon.com/ More on profitability ratios: https://www.finstanon.com/articles/35-profitability-ratio-analysis
Views: 755 Finstanon.com
117 Profitability Analysis in Business Plan on Strategy Sunday
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 Financial Ratio Analysis in 15 minutes
This video helps you to learn Calculation of Financial Ratios with the help of practical example
Views: 612399 Ns Toor
Understanding Financial Ratios
Courses to help you prepare for the CMA Exams Use the code for 50% discount Pass the CMA Exam the first time -Investment decisions https://www.udemy.com/pass-the-cma-exam-2-the-first-time-investment-decisions/?instructorPreviewMode=guest – Code CMA20171 Pass the CMA Exam the first time -Decision analysis https://www.udemy.com/pass-cma-exam-2-the-first-time-decision-analysis/?instructorPreviewMode=guest– Code CMA2017 Pass the CMA Exam the first time -Financial decision making https://www.udemy.com/cma-exam-2-review-financial-decision-making-section-a/?instructorPreviewMode=guest – Code CMA2017 Pass the CMA Exam the first time - Corporate finance https://www.udemy.com/cma-exam-2-study-program-section-b-corporate-finance/?instructorPreviewMode=guest – Code CMA2017 Pass the CMA #1 exam Planning Budgeting & Forecasting https://www.udemy.com/cma-exam1-study-program-section-b-planning-budgeting/?instructorPreviewMode=guest – Code CMA2017 Know how to be successful in writing the CMA Exam #1 MCQ's https://www.udemy.com/certified-management-accounting-exam-hack-part-1/?instructorPreviewMode=guest– Code CMA2017
Views: 102557 Dr. John Daniel McLellan
Financial Statement Analysis #2: Ratio Analysis - Liquidity (Short Term Solvency)
http://www.subjectmoney.com http://www.subjectmoney.com/articledisplay.php?title=Financial%20Statement%20Analysis%20and%20Ratios In this financial statement analysis tutorial we are covering liquidity measures or short term solvency ratios. Here you will learn about the current ratio, the quick ratio (acid test) and the cash ratio. Short-term solvency measures are used to determine whether or not a company would be able to pay off its short-term liabilities if they were to come due within the near future. Please don't forget to subscribe, rate and share our videos. Please also visit our website at http://www.subjectmoney.com and http://www.excelfornoobs.com https://www.youtube.com/user/Subjectmoney https://www.youtube.com/watch?v=G8v9hF0k3gI
Views: 73571 Subjectmoney
Cost Volume Profit Analysis (CVP): Target Profit
This video illustrates how to calculate the number of units and sales dollars in order to reach a target net income or profit level. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira 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 Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 69690 Edspira
DuPont analysis explained
DuPont equation tutorial. ROE: Return On Equity. ROA: Return On Assets. ROS: Return On Sales. This video takes you through the financial ratios of the ROE formula, the ROA formula, the ROS formula, asset turnover and leverage, and shows how they fit together. The very basics and the very essence of financial ratio analysis! ROE or Return On Equity is defined as Net Income divided by Equity. In other words, the net profit that a company has generated during a year, divided by the book value of the shareholder capital invested in the company. ROE is a measure of the rate of return to shareholders. The 3-part version of the DuPont analysis shows you that ROE = ROS x asset turnover x leverage. The first two elements together, ROS multiplied by Asset Turnover, form ROA, Return On Assets. This ratio of ROA has many variations, some companies measure ROIC Return On Invested Capital, ROTC Return On Total Capital, ROCE Return On Capital Employed, or RONOA Return On Net Operating Assets. These are all variations on the same theme, you look at the returns (profit) generated during a period, and compared them to the capital invested in the company to generate those returns. ROA is an indicator of business success, influenced by two factors: ROS or margin performance, and asset turnover which you could call speed or velocity. ROS or Return On Sales, is Net Income divided by Sales, which is an indicator of the relative profitability or operating efficiency: how many cents of profit are generated for every dollar of sales? Asset Turnover is calculated as Sales divided by Assets, a measure of asset use efficiency. The last element of the DuPont 3-part equation is leverage, Assets divided by Equity. You can expand the DuPont formula to 5 steps, if you want even more analytical insight into the drivers of where your ROE increase or decrease is coming from. The two elements on the right stay the same: asset turnover and leverage. However, ROS gets split into three elements: Net Income divided by Earnings Before Tax, which is called tax burden, Earnings Before Tax divided by EBIT, called interest burden, and EBIT divided by sales, which is EBIT%. In a lot of companies, improving the EBIT% and increasing the Asset Turnover, are important targets for the management team, whereas the other elements are for the finance, treasury and tax departments to manage. For an illustration of Return On Assets, my follow-up video analyzing ROA, ROS and asset turnover of Verizon and Walmart is highly recommended https://www.youtube.com/watch?v=2j8bfR8KqJ0 Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Profitability Analysis  | Principles of Accounting
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: 38 Course Hero
Ratio Analysis: Return on Capital Employed (ROCE)
This short revision video introduces the concept of Return on Capital Employed.
Views: 80266 tutor2u
Ratio Analysis - Gearing
This revision video explains the concept of gearing and illustrates how the main gearing ratios are calculated and interpreted.
Views: 66406 tutor2u
Return On Equity explained
What is Return On Equity? Return On Equity or ROE is a financial ratio that can help you analyze the performance of a company or business unit from the perspective of the shareholder, and compare the financial performance to others. This video takes you through the Return On Equity formula, shows you how to calculate ROE, how to interpret ROE, and gives suggestions on how to improve Return On Equity. Return On Equity links together information from two of the three main financial statements, by taking the bottom line of net profit from the income statement and the equity or shareholder capital amount out of the right hand side of the balance sheet. ROE or Return On Equity is defined as Net Income divided by Equity. In other words, the net profit that a company has generated during a year, divided by the book value of the shareholder capital that a company owes on the balance sheet date. ROE is an important indicator of attractiveness of a business to shareholders. Can the company generate a good return on the equity that investors have invested in it? Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
3. Hindi: Fundamental Analysis (Balance Sheet - I)
In the earlier two videos we have seen how to study the Profit & Loss Statement of any manufacturing company. In this video we would be studying the Balance Sheet of a company and what to look for in it. It is suggested that viewer watches the earlier videos before this one, as the same example is being brought forward from the earlier two videos. The earlier videos can be viewed here: https://www.youtube.com/playlist?list=PLqq6GEawfJdrXZDhQ3h2S-HLeVUwkBUy7 Balance Sheet is the other important financial statement of any company, after Profit & Loss Statement. Together the P&L Statement and Balance Sheet give a complete picture of the company's financial position. If a balance sheet is healthy, and continues to grow in a healthy manner, the stock price will rise sooner or later. In a falling market, share of companies with strong balance sheets fall less. Thus it is extremely important to understand at least in a very basic manner how to identify a good balance sheet and how to steer away from a bad one. The single important factor between companies which have created wealth for investors over long periods of time and across various markets all over the world has been the controlled level of debt on the balance sheets of these companies. No company can become a multi billion one overnight just by amassing loads of debt. Debt is not a substitute to time. Profitable and wealth creating companies are those which, on the contrary do not take huge debt and keep doing what they do best for long, very long, periods of time, consistently. The real hallmark of a potential multibagger is consistency in operations with low debt on balance sheet and high return on equity for investors. Please write your feedback and comments so that we can incorporate that in our future videos. To know more about online trainings call Shailesh on 8600043130. Thank you for watching (Y)
Why is gross profit so important? Client Question- David C Barnett- Small Business Analysis
I discuss gross profit and why I think it's the most important number on the income statement. Talk to me about your issue at http://www.clarity.fm/davidbarnett Visit my blog at http://www.InvestLocalBook.com to learn more for free and see how you can work with me on your project.
Views: 3498 David Barnett
Profitability Ratio Scan
This is a video on Profitability Ratio scan for Stockedge. Profitability Ratio is an important scan to filter stocks based on growth investing. Description- In fundamental analysis of a stock, Profitability of a company is one of the most important aspect to look at. After all, if we don not know whether the company is making profit or how much profit it is making, we would not be able to form any view on it. There are profitability ratios like Return on Equity (ROE), Return on Capital Employed (ROCE) and other ratios that an analyst should look at. StockEdge app provides you ready-made scans using which, you can search companies that are making consistent profit. There are many criteria in the scans which you can use as per your needs to select stocks for further research. Watch this video to use Profitability Scans effectively in StockEdge app. Call to Action You can also buy StockEdge Basic Membership and get access to advanced feature of StockEdge app. https://stockedge.com/Plans/basicmembership Learn Fundamental Analysis- https://www.elearnmarkets.com/courses/display/equity-research-analysis You can follow us on twitter https://twitter.com/mystockedge?lang=en
Views: 731 Stock Edge
#1 Ratio Analysis [Liquidity & Activity Ratios] ~ Concept behind formation of a Formula
#RatioAnalysis #LiquidityRatios #ActivityRatios 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: Current Ratio, Quick Ratio, Fixed Assets Turnover Ratio, Current Assets Turnover Ratio and Working Capital Turnover Ratio, Further discussed concept of Current Assets, Quick Assets 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: 161332 CA. Naresh Aggarwal
James Webb: How to Read a Financial Statement [Crowell School of Business]
James Webb, Higher Education Executive, Accounting Professor, and CPA, explains how to read a financial statement. Download the Excel file referenced in this video at the link below. http://crowell.biola.edu/blog/2012/nov/12/business-fundamentals-how-read-financial-statement/ The Crowell School of Business regularly hosts a selection of accomplished business leaders that share their varied professional and personal insights in the Distinguished Lecture Series. Learn more about the Crowell School of Business at https://www.biola.edu/crowell
Views: 394472 BiolaUniversity
Controlling and Profitability Analysis Overview | SAP COPA Profitability Analysis
SAP FICO Training Videos for Instructor led Online training from ZaranTech For More Info: Please visit, http://www.zarantech.com/course-list/sap/finance-controlling Contact Info: 515-309-7846 (or) Email - [email protected] ======================================== Course Duration:75-80 hours Live Training + Assignments + Actual Project Based Case Studies ========================================= Pre-Requisites: Entry Level Fresh Graduates who want to start a career in SAP. Someone who is looking for a career in SAP FICO. Someone who is working as a SAP MM/SD consultant and wants to learn SAP FICO skills. ========================================= About the trainer - More than 8 years of Consulting & Teaching experience in different modules of SAP FICO. Primarily SAP FI & CO. - With a strong back ground in training and deep knowledge of the core subject and techniques on getting certification successfully completed many batches in US and Canada. - Trained over 500 students and 80% of the students accomplished in getting certification in various modules. - Taught more than 100 SAP FICO batches in various versions US, Canada and India for major Consulting companies like Siemens, DELLOLITE, etc. ========================================== MODULES COVERED IN THIS TRAINING: In this training, attendees learn: Module 1. Introduction to SAP R/3 Module 2. Financial Accounting Basic Settings Module 3. Enterprise structure/Fiscal Year/Posting Period/Field Status variant Module 4. Posting keys/Chart of Accounts/Assignment of Chart of Accounts/ Account Group Module 5. Retained Earnings/ Document number ranges/Document Type/ Document Posting Module 6. New General Ledger Module 7. G/L account creation/change/display/blocking & unblocking/balance display Module 8. Document display/change/changed documents display/holding/parking/reversal Module 9. individual/mass/accrual /deferral cleared item reversal Module 10. Sample/recurring documents/interest calculation/foreign currency valuation Module 11. Open item management/tolerance group employees Module 12. Accounts Payable- Sub Ledger Module 13. Account group and number range creation/document number & assign number ranges Module 14. Tolerance group for vendors/Vendor master data/ Reconciliation account/purchase invoice posting Module 15. payment to vendors/open item management/payment terms creation Module 16. Automatic payment Program/Discount recd/ Special G/L transactions Module 17. Accounts Receivable- Sub Ledger Module 18. Account group creation/number range creation/document number ranges/Assign number ranges Module 19. Tolerance group for customers/Customer master data/Reconciliation account/sales in posting Module 20. Payments from Customers/Open item management/Discount allowed/Dunning Module 21. Special G/L transactions/Define Dunning Procedure/Assign Dunning Procedure Module 22. Asset Accounting- Sub Ledger Module 23. Chart of Depreciation/Depreciation Area/Assign COD to Company Code Module 24. Assign Input tax indicators/Account Determination/Asset Class/Number range interval Module 25. Define Asset Class/Number range interval/Creation of Asset G/L accounts Module 26. Accumulated depreciation accounts/Sale of Asset/Loss on sale of asset/Scrap G/L account Module 27. Screen Layout- Asset class/Asset master/depreciation areas Module 28. Depreciation Keys: Define Base Method/Define Multilevel method/Period control methods Module 29. Creation of main Asset master and sub asset master data/Asset transactions Module 30. Depreciation run/display of balances Module 31. Reports and Integrations Module 32. Financial statement versions/ Reports in G/L accounting/list of accounts/List of journal entries Module 33. Reports in Accounts Payable / Accounts Receivable and Asset Accounting Module 34. SD-FI/MM-FI and CO-FI Integration Module 35. Controlling Module Module 36. Basic Setting for controlling Module 37. Cost Element Accounting Module 38. Cost center Accounting Module 39. Profit Center Accounting Module 40. Internal Orders Module 41. Profitability Analysis Module 42. Product Costing- Basics =================================== Checkout what our past trainees are saying: Recommendations on Facebook - Click here, http://www.facebook.com/ZaranTechLLC Testimonials on our website -- Click here, http://www.zarantech.com/testimonials =================================== Refer your friends to ZaranTech for their Training & consulting needs and Reward yourself with benefits, http://www.zarantech.com/be-a-friend-tell-a-friend ==================================== What is Instructor led LIVE training? - See this Video for more info, http://www.youtube.com/watch?v=G908QvF-gVA What is Instructor led VIDEO training? - See this Video for more info, http://www.youtube.com/watch?v=WmWqzGFPqck
Views: 11222 ZaranTech
Profitability Case Study Interview Example - Solved by Ex-McKinsey Consultant
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: 28840 CraftingCases
CMA - Strategic MA - W3 - Customer Profitability Analysis 2
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: 628 Tech Asia
Product Profitability Analysis Report With Odoo12
BrowseInfo is a global IT services company focusing on software development, IT consulting and provides offshore outsourcing solutions to enterprises worldwide. We develop custom web applications which not only establish easy and effective interaction with your customers but also make you one of the industry leaders. Contact us: [email protected]
Views: 36 BrowseInfo

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