Profit Margin - Acc 311, The University of Texas

in Chapter 3 (Video 3 of 5)

3 minutes

Profit Margin is crucial for businesses to optimize. Let's take a look at what it actually is.

This Video Mentioned Some Formulas

Revenues

– Expenses

Net Income

Profit Margin = Net Income / Sales Revenue

Sales

– COGS

Gross Profit

Gross Profit Margin = Gross Profit / Sales Revenue

Gross Profit Ratio is the same as Gross Profit Margin

1	The Multistep Income Statement	12:44
2	Gross Profit vs Net Profit	6:15
3	Profit Margin You are here.	3:22
4	Cash vs. Accrual Accounting	7:21
5	Expense Recognition	8:07

	Click Here to View All Chapter 3 Problems at Once	View
1	Revenue Recognition	Easy
2	Determining Net Income From Transactions	Moderate
3	Determining Net Income From Journal Entries	Moderate
4	Calculating Operating Income	Hard
5	Revenue and Expense Recognition	Hard