OPERATING PROFIT MARGIN: a Quick Guide

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  • čas přidán 24. 07. 2024
  • 💥Profitability Ratios Cheat Sheet → accountingstuff.com/shop
    The second instalment of our Financial Ratios series. In this video you'll learn what 'Operating Profit Margin' is and I'll show how to calculate it with examples.
    🔴Subscribe for more Accounting Tutorials → geni.us/subtothechannel
    🔗Financial Ratios Playlist → • Your Guide to FINANCIA...
    ⏱️TIMESTAMPS
    00:00 - Intro
    00:06 - Operating Profit Margin Definition
    00:35 - What is Profit?
    00:51 - What is Operating Profit?
    02:13 - What is Operating Profit Margin?
    02:47 - Example: Operating Profit Margin
    03:50 - Comparison: Year on Year
    04:30 - Comparison: Different Businesses
    05:10 - What Decreases Operating Profit Margin?
    06:09 - What Increases Operating Profit Margin?
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    #accounting #accountingstuff #financialratios

Komentáře • 90

  • @AccountingStuff
    @AccountingStuff  Před 2 lety +9

    ⏱️TIMESTAMPS
    00:00 - Intro
    00:06 - Operating Profit Margin Definition
    00:35 - What is Profit?
    00:51 - What is Operating Profit?
    02:13 - What is Operating Profit Margin?
    02:47 - Example: Operating Profit Margin
    03:50 - Comparison: Year on Year
    04:30 - Comparison: Different Businesses
    05:10 - What Decreases Operating Profit Margin?
    06:09 - What Increases Operating Profit Margin?

    • @elise030996
      @elise030996 Před 2 lety

      Is so good to have this topics layout 👍👍

    • @AccountingStuff
      @AccountingStuff  Před 2 lety

      @@elise030996 Thanks, glad you found that useful!

  • @wolfiethefearless7902
    @wolfiethefearless7902 Před 2 lety +33

    This mans just saved me from being horribly confused in my finance and accounting classes. He teaches so well.

  • @KumR
    @KumR Před 2 lety +9

    No matter what biz or job one does, at end of the day it boils down to operating profit.Excellent video.

  • @rhitamdutta1996
    @rhitamdutta1996 Před rokem +1

    Perfect explaination. Straight to the point.

  • @chelseas8791
    @chelseas8791 Před 2 lety +1

    Our accounting teacher assigned your videos for further study and review. And now that I'm in finance classes I'm back again! Would love more ratios and time value of money! Thank you so much for all of this.

  • @JunemarFlores
    @JunemarFlores Před 2 lety +4

    No wonder why it takes you so much time uploading new videos. These are perfection💯. The information are on-point, organized, and most importantly, very presentable.

    • @AccountingStuff
      @AccountingStuff  Před 2 lety +1

      Each of these videos takes far too long for me to make. I'd love to release more regularly :)

  • @happinesstshepiso9258
    @happinesstshepiso9258 Před 2 lety +2

    I'm always Excited when I see your Newly Posted Video of Accounting Stuff James...Well Done👌🏆

  • @DreamFirms
    @DreamFirms Před 2 lety

    You discussed everything clearly!

  • @rikwilliams2916
    @rikwilliams2916 Před rokem

    Outstanding explanation.

  • @taylorandrews4461
    @taylorandrews4461 Před 2 lety +1

    Always a good day seeing you upload, even in free time hungover listening to your explanations are still interesting

  • @miriamjumbo9987
    @miriamjumbo9987 Před rokem

    You are very creative. 🙏 Thanks

  • @Everyday_Richard
    @Everyday_Richard Před 2 lety +1

    You are amazing! Thank you.

  • @tranhuythang978
    @tranhuythang978 Před 2 lety +3

    Man!! You have such great contents.
    I’m really glad that you are moving towards Finance, from Accounting. Would be great if you could make more videos on how to analyze financial reports to understand the condition of a business.
    Really looking forward to future videos.

  • @vajetley
    @vajetley Před 5 měsíci

    Really well explained. Great video

  • @JANICEDEHERCE
    @JANICEDEHERCE Před 2 lety

    This is cool, thanks for sharing

  • @mohamedeassa
    @mohamedeassa Před 2 lety +1

    Really appreciate the great content.

  • @vxoliy153
    @vxoliy153 Před 2 lety +1

    Great Accounting channel please make us some cost accounting such manufacturing overhead , variances analysis , etc that would be great too. Thanks

  • @darkthoughtbox
    @darkthoughtbox Před 4 měsíci

    Bro. You explained to me in 6 minutes what one of my college courses took 6 hours to explain. I was clueless afterwards until I ran into your video. Very clear, articulate, and in laymen terms. I appreciate you so much.

  • @kirkmanuelmacabale4534
    @kirkmanuelmacabale4534 Před 2 lety +2

    Thanks for sharing sir James. I'm sure in the future, this could help my mom studying this stuffs

  • @elise030996
    @elise030996 Před 2 lety +1

    Thanks for sharing

  • @vamp9750
    @vamp9750 Před 2 lety

    thank you my man just keep them coming

  • @FRANKWHITE1996
    @FRANKWHITE1996 Před 2 lety

    Thanks for sharing ✅

  • @katface28
    @katface28 Před 2 lety +2

    It's like you know what I'm studying when I'm studying it. Outstanding video as usual. #goat

    • @AccountingStuff
      @AccountingStuff  Před 2 lety +1

      Hope your studies are going well :)

    • @katface28
      @katface28 Před 2 lety

      @@AccountingStuff I actually got a scholastic award last semester because of my GPA. Literally couldn't have done it without you.

    • @AccountingStuff
      @AccountingStuff  Před 2 lety +1

      @@katface28 Dang! Nice one. Well done :)

  • @succoursector6454
    @succoursector6454 Před 2 lety +1

    My Favourite Teacher ❤️ Grateful to you...

  • @deebaji
    @deebaji Před 2 lety

    EBIT_________Awesome 👍☺

  • @TheGippy30
    @TheGippy30 Před 2 lety +1

    Wow James your truly back

  • @coevans3570
    @coevans3570 Před 2 lety

    I subbed! Thanks for helping me understand accounting. When you get a chance can you go over the flow of cash and work in process inventory. Thank you so much!!!

    • @AccountingStuff
      @AccountingStuff  Před 2 lety

      Great to have you on board! Cheers for your request :)

  • @Daniel-oj2xe
    @Daniel-oj2xe Před 2 lety +1

    Sir James, we all are always waiting your new uploads! We hope one day you can make one week one new uploads ! Thanks

  • @sandyy266
    @sandyy266 Před 2 lety +6

    I'm 15 now so I don't understand this stuff now, but I am sure that 5 years from now this will be veryyyy helpful

    • @sunriseeternity300
      @sunriseeternity300 Před 2 lety +2

      Much Respect. Many of us would be in better situations if we had started picking these types of financial gems up at your age. Good luck and keep making smart, deliberate moves.

    • @AccountingStuff
      @AccountingStuff  Před 2 lety +1

      You are well ahead of where I was at 15!

  • @yaredgirma8032
    @yaredgirma8032 Před 2 lety +1

    Keep it please
    About stock or inventory how to calculate unit cost in working progress

  • @NuraIbrahimNIB
    @NuraIbrahimNIB Před 2 lety

    You are the best, and I wish you the best, please when will you start videos on IFRS

  • @Stewwwwww
    @Stewwwwww Před rokem

    How would you work out the profit from a product with VAT? Is vat paid back on all products?

  • @turaytalksjourney2024
    @turaytalksjourney2024 Před 2 lety +1

    Hello! Thank you so much Sir for such video. I don't actually know if you have a well structed note base on your tuitorials like exercises and flowing by solutions. Thank you.

    • @AccountingStuff
      @AccountingStuff  Před 2 lety

      No problem! I have Cheat Sheets which summarise the information. But no exercises and solutions. It's something that I'd like to put together in the future :)

    • @turaytalksjourney2024
      @turaytalksjourney2024 Před 2 lety

      @@AccountingStuff OK no problem! Because I already bought that cheat sheet from you and I was hopefully thinking of something like that will be there. Yet still can't wait to see that. Thank you again.

  • @mohsinbaig2195
    @mohsinbaig2195 Před 2 lety +1

    Will you kindly makes a video on Cost of structure (Accounting from incomplete records)?

    • @AccountingStuff
      @AccountingStuff  Před 2 lety +1

      Bioshock reference? Anyways, thanks for your request!

  • @Reginerch
    @Reginerch Před 2 lety +1

    please talk about impairment and amortization

  • @yomeme2490
    @yomeme2490 Před 2 lety +1

    Can you help me to make balance sheet

  • @LauryDepp
    @LauryDepp Před rokem

    I read somewhere that operating profits will be the porcentaje earn over each income dólar. Like if you ooeratinog profit is 30% it means you made 0 30 cents for each dólar earn ? But each dólar earn is without the expenses. So it wouldn't be 1 dólar earn. To me can u explain what it represents ?

  • @Prince-kn6qq
    @Prince-kn6qq Před 2 lety

    Hii
    I just wanted to ask that when students study these things in america because i am studying these things since i entered grade 11

  • @pablomorales8969
    @pablomorales8969 Před 2 lety

    Expenses explained, please @Accounting Stuff

  • @MeorMuhammadAznilBinMeorHaris

    hopefully you see my comment. may i know which better for the OPM. when it increase from the prior year or decrease from the prior year?

    • @AccountingStuff
      @AccountingStuff  Před měsícem

      An increase in OPM tends to be a good thing. Being up MoM or YoY depends on the context though

  • @maxvandermoolen6257
    @maxvandermoolen6257 Před 2 lety +2

    Can you do a video on audit accounting?

  • @ahmadasghar4984
    @ahmadasghar4984 Před 2 lety +1

  • @johnmark5003
    @johnmark5003 Před 2 lety

    Can you do a video of provision?

  • @languagesandotherstuffs3305

    يخرب بيت جمالك 😍😍⁦💃🏿⁩

  • @banuke80
    @banuke80 Před 2 lety

    I heard INLET is coming out with their new GPU soon. Maybe then they will increase their OPM more. MAD will be so mad after this! haha

  • @KumR
    @KumR Před 2 lety +1

    Is this same as Contribution Margin?

    • @AccountingStuff
      @AccountingStuff  Před 2 lety

      They are slightly different. Contribution Margin only includes variable costs whereas Operating Margin includes Fixed and Variable

  • @neelmoradiya1389
    @neelmoradiya1389 Před rokem

    🙏🙏👍👍🇮🇳🇮🇳

  • @faizrock5297
    @faizrock5297 Před 2 lety

    Please create a course on udemy/skillshare

    • @AccountingStuff
      @AccountingStuff  Před 2 lety

      Perhaps someday. But I prefer posting videos on here for everyone to watch for free

    • @SpaceMan780
      @SpaceMan780 Před 3 měsíci

      ​@@AccountingStuff
      Thanks: ")

  • @Lolomarieee
    @Lolomarieee Před 2 lety

    Marginal tax rates??? I'm begging :)