acct209 at Texas A&M

3. Profit Margin

in Chapters 5 & 6 (Video 3 of 14)
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

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