Search results “Investment profit ratio”

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।
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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.
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Hope you liked this video in Hindi on “Profitability Ratios - Gross, Net, Operating Profit Margin”.

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Asset Yogi

Return on Sales (income statement) and Return on Invesmtent (returns to balance sheet). For more financial risk videos, visit our website! http://www.bionicturtle.com

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Bionic Turtle

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This video is about the Price-to-Earnings Ratio. This ratio can be summarized as: the amount you are willing to pay for every 1$ unit of EPS of the company. Learn how to interpret this as it can become a useful tool when comparing stocks, but be certain to take into account the sector, industry, market and debt status of these companies (don't compare apples to oranges!) Cheers!!
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Dividend Investor!

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

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Mergers & Inquisitions / Breaking Into Wall Street

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!
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Profit Margin (Ratio) in 9 minutes - Financial Ratio Analysis Tutorial
http://www.youtube.com/watch?v=auLmI7bzY0o

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MBAbullshitDotCom

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.

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tutor2u

The price-to-book value ratio is calculated by dividing the current share price by its book value (all fixed and current assets minus current and long-term liabilities) per share (book value divided by the total number of shares in issue).
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moneycontent

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.

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tutor2u

The conventional price earnings (p/e) ratio is great for deciding how cheap a share is. But Tim Bennett is an even bigger fan of its variant, the cyclically adjusted p/e ratio, (Cape). In this video, he explains why.

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MoneyWeek

Financial metrics are the key numbers that you can focus on in financial statements. There are three financial statements, the balance sheet, the income statement and the cash flow that we like to look at to find important metrics. http://bit.ly/2xOCmRl
Were going to look at some of the most important financial metrics that you as investors can use to evaluate a company.
The first important number we look at on the balance sheet is liquidity. Can the company you’re looking at really cover everything that they need to cover in the next year? Or have they somehow overloaded themselves with short term debt and obligations that they could really run out of cash in the next year?
In order to evaluate this, we want to look at the current ratio. Essentially it is a measure of working capital. It compares the current assets, which are assets that can be turned into cash in the next year, with current liabilities, which are obligations that have to be paid in the next year.
What you want to look for when evaluating a company is a 2:1 ratio of liquidity to debt. Some companies are very well run that have a lower ratios than that, because they are controlling their cash very well, or they are in an industry that isn’t growing fast so they don’t need as much liquidity.
These companies work their capital down so they don’t need as much cash on hand all the time and they can give that money to their shareholders. You will know that these companies are very well run because, they are really big companies.
Most companies, particularly smaller companies need at least a 2:1 ratio between current assets and current liabilities. That’s a great measure of liquidity. We call that the liquidity metric.
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Phil Town's Rule #1 Investing

The p/e ratio is the main measure analysts use to determine a company's position relative to the rest of the market.
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moneycontent

Analysis of Investment - Valuation Ratios
Watch more Videos at https://www.tutorialspoint.com/videotutorials/index.htm
Lecture By: Mr. Niranjan Kumar, Tutorials Point India Private Limited

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Tutorials Point (India) Pvt. Ltd.

This revision video explains the concept of gearing and illustrates how the main gearing ratios are calculated and interpreted.

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tutor2u

With the help of an example sum, you will learn how to calculate profit sharing ratio. You will learn an easy technique to solve such sums.

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Jagrat Creation

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InvestmentPropCoach

In order to calculate return on investment ratio follow the link:
http://www.financialratioss.com/profitability-ratios/return-on-investment
More info on other financial ratios can be found here: http://www.financialratioss.com
Full description:
What is return of investment?
Return of investment (ROI) is a measure which evaluates the efficiency of investment. This is very popular and often used ratio.
Common Norms and limitations:
Negative value of return of investment shows an unprofitable use of company's assets.
While evaluating company's activity it is important to realize that ROI is only one of many financial ratios and relying only on it would not be recommended.
How to calculate return of investment?
Data to calculate this measure is collected from the income statement.
It is worth mentioning that this ratio can be calculated in many ways but mostly two of it is used in practice. ROI can be calculated to evaluate the whole activity of a company and of separate project as well.

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FinancialratiossCom

In this video we will highlight how to use profitability ratios in excel.

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InLecture

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Forex Investors Alliance

Calculation of Profitability Ratios- G.P.Ratio/N.P.Ratio/Operating Ratio/Operating profit ratio -By Jitender Kumar { M.Com. , M.Phil. , C.M.A.(Inter) , C.S.(Inter) , P.G.D.B.A. , P.G.D.F.M. , U.G.C.N.E.T. Qualified }
This is a channel for Financial Accounting, Corporate Accounting, Cost Accounting, Management Accounting and Financial Management. If you have doubts in a particular topic, whatsapp me that topic on my number 8447451771 or write in the comment box. I will definitely try to make tutorial for that topic.
Brief description about Mr. Jitender Kumar
Mr. Jitender Kumar is a graduate in commerce from Delhi University. He holds M.Com. and M.Phil degrees from Madurai Kamaraj University. He has also obtained Post Graduate Diploma in Financial Management and Post Graduate Diploma in Business Administration from Annamalai University. He qualified Cost and Management Accounting (C.M.A.)(Inter) in his first attempt and obtained All India Rank 48. He also qualified C.S.(Executive) in his first attempt securing first division. He qualified U.G.C.N.E.T. IN June 2012 with an enormous total of 75% marks. Besides this, he holds many certifications from National Stock Exchange(N.S.E.). Since 2002, he has taught many hundreds students.
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1. What does a high operating ratio indicate?
Ans. High operating ratio indicates higher operating cost of the business & thus lower operating profits are available to the firm.
2. A Ltd. and B Ltd. are two companies operating in the same field and having STR of 4 times and 5 times respectively. Which company is having a better STR?
Ans. STR of B Ltd. is better than the STR of A Ltd. since higher STR indicates efficient performance i.e. stock is being converted into sales quickly.
3. Give any two ratios judging the efficiency of a concern.
Ans. STR and DTR.
4. What do you understand by Accounting Ratio?
Ans. Accounting Ratio may be defined as a mathematical expression of the relationship between two items or group of items shown in the Financial Statements.
5. State any two limitations of Ratio Analysis.
Ans. (i) Qualitative factors are ignored.
(ii) Price level changes are not reflected.
6. State the limitation of ratio analysis regarding qualitative aspect.
Ans. As ratio are arithmetical expression, qualitative aspect cannot be presented through ratios. Therefore, in making decision with the help of ratio, almost care should be taken, as ratio is only one-sided approach to measure the efficiency of the business.
7. Name the ratios that indicate the liquidity of an enterprise.
Ans. Current Ratio and Liquid Ratio.
8. What is the ideal Current Ratio and Quick Ratio?
Ans. Ideal Current Ratio 2:1, Ideal Quick Ratio 1:1
9. How the solvency of a business is assessed by ‘Financial Statement Analysis’?
Ans. Through solvency Ratios, the solvency of a business is assessed by ‘Financial Statement Analysis’.
10. What does a low Debtors’ Turnover Ratio indicate?
Ans. It may be an indication of long credit period or slow realisation from debtors.
11. What does a low working Capital Turnover Ratio indicate?
Ans. It is an indication of inefficiency of working capital management.
12. How the ‘Earning Capacity of a business’ is assessed by ‘Financial Statement Analysis’?
Ans. On the basis of ‘Profitability Ratios’ earning capacity of a business is assessed.
13. What will be the Operating Profit Ratio, if Operating Ratio is 82.95%?
Ans. Operating Profit Ratio = 100- Operating Ratio
= 100- 82.59 = 17.41%.
14. The gross Profit Ratio of a company is 50%. State with reason whether the decrease in rent received by Rs.15,000 will increase, decrease or not change the ratio.
Ans. Decrease in rent received by Rs.15,000 will not change the Gross Profit Ratio because rent received neither effects the gross profit nor the net sales.
15. X Ltd. has a Debt Equity Ratio at 3:1. According to the management, it should be maintained at 1:1. What are the two choices to do so?
Ans. The two choices to maintain Debt Equity Ratio at 1:1 are-
a) To increase the Equity
b) To reduce the debt.
16. You are a Debenture holder of a reputed company. Mention any two ratios that you will compute to examine whether your decision was justified.
Ans. (i) Debt Equity Ratio (ii) Interest Coverage Ratio.
17. What does a higher inventory turnover ratio indicates?
Ans. A higher inventory turnover ratio indicates that finished inventory is rapidly turning into sales.

Views: 3401
Jitender Kumar

Accounting for evaluating assets relative to activity (turnover) and profitability, 1-Asset Turnover Ratio, 2-Profit Margin on Sales and 3-Rate of Return on Assets, (1) Asset Turnover Ratio: How efficiently a company uses its assets to generate sales, (net sales/average total assets) = equals asset turnover ratio, (2) Profit Margin on Sales Ratio: (Rate of Return on Sales), how profitably the company uses its assets, (net income/net sales) = profit margin on sales, and (profit margin on sales x asset turnover ratio) =rate of return on assets, (3) Rate of Return on Assets (ROI): The rate of return a company acheives through use of its assets, (net income/average total assets) = rate of return on assets, detailed calculations by Allen Mursau

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Allen Mursau

ACCOUNTING RATIOS PART- 7 || OPERATING RATIO-OPERATING PROFIT RATIO,RETURN ON INVESTMENT CLSS 12

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waves academy

Profitability index is an investment appraisal technique calculated by dividing the present value of future cash flows of a project by the initial investment required for the project.
Profitability index (PI), also known as profit investment ratio (PIR) and value investment ratio (VIR), cost-benefit ratio or benefit-cost ratio.
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Profitability index is used time value of the money concepts in its calculation. Profitability index ratio is calculated, the present value of the future cash flows, divided by initial investment for the project. Different formulas are used for Profitability index calculation. The result of all formulas must be same. You may use any one formula, selection of the formula depends on your requirement and available data of the projects.
Profitability index formula
Profitability index equal present value of future cash flows divided by initial investment.
How to calculate profitability index?
You may use excel or calculator or present value table.
The Advantages of Profitability Index are given below.
1. Profitability index considers the time value of money.
2. Profitability index considers analysis all cash flows of entire life.
3. Profitability index makes the right in the case of the different amount of cash outlay of different project.
4. Profitability index ascertains the exact rate of return of the project.
The disadvantages Of Profitability Index are as follows:
1. It is difficult to understand interest rate or discount rate.
2. It is difficult to calculate profitability index if two projects having a different useful life.
https://en.wikipedia.org/wiki/Profitability_index
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Accountingplus

Profitability Index or Benefit Cost Ratio is explained in Hindi. It is a capital budgeting technique just like NPV, IRR and Payback Period that helps you in analysing any investment or business.
Related Videos:
NPV (Net Present Value): https://youtu.be/SpHIBfPGwx8
IRR (Internal Rate of Return): https://youtu.be/x6eXfx2Tv-w
NPV vs IRR: https://youtu.be/kUV9xE2B7KU
Payback Period Method: https://youtu.be/8MnGVL_3QuI
Discount Rate - https://youtu.be/XqqD1d713W8
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In this video, we have explained:
What is profitability index?
How to calculate benefit cost ratio?
What is the best method for cost benefit analysis?
How to calculate profit using profitability index method?
How to use the profitability index formula for investments?
How to calculate profits for investment in Microsoft Excel using the profitability index formula?
What is the profitability index calculation formula for excel calculation?
What are the best methods for profit calculation for any business, project or investment?
What is the manual calculation formula of profitability index?
How to evaluate cost benefit ratio for any investment?
How to calculate the cost and return ratio for any investment plan?
How to know which business, project or investment is best for you?
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Hope you liked this video in Hindi on “Profitability Index”.

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Asset Yogi

part1 of ostrich farming is about to investment and part2 is about its profit ratio in Pakistan and India....

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Business Talks

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।
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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.
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Hope you liked this video in Hindi on “Financial Ratios & Analysis”.

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Asset Yogi

Profitability ratios are financial metrics used by analysts and investors to measure and evaluate the ability of a company to generate income (profit) relative to revenue, balance sheet assets, operating costs, and shareholders’ equity during a specific period of time.
Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/finance/profitability-ratios/

Views: 1610
Corporate Finance Institute

Stay updated and follow us:
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EthisCrowd

Profitability ratios, gross profit margin, net profit margin, return on investment, return on equity, networth, capital employed, net profit, net sales

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S-KILL-2-Rise

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)
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#Accounting #Education #FundamentalAnalysis

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AccoFina

RATIO INVESTMENT PROFIT

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Online Science Class

Please watch: "Miscellaneous Word Problems-166 | Mission IBPS CLERK 2018-19 #Amar Sir"
https://www.youtube.com/watch?v=UDfkp8zWnSk --~--
Amar Sir's Math Tricks: Quicker Method: Just in few seconds: Without using pen and paper: SBI PO/ Clerk/ IBPS PO/ Clerk/ SSC CGL/ Railway/ RRB/ LIC/ NDA/ CDS/ IAS/ JPSC/ BPSC: By Amar Sir having an experience of 23 years of teaching: Director of Chanakya Career Academy, Jamshedpur: 09931134475\09334476175

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Amar Sir

Like this MoneyWeek Video? Want to find out more on PEG ratio?
Go to: http://www.moneyweekvideos.com/peg-ratio-what-does-it-tell-us/ now and you'll get free bonus material on this topic, plus a whole host of other videos.
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MoneyWeek

Welcome to the Investors Trading Academy talking glossary of financial terms and events.
Our word of the day is “Return On Investment”
Return on investment is known as ROI. This term means different things to different people often depending on perspective and what is actually being judged so it's important to clarify understanding if interpretation has serious implications.
Many business managers and owners use the term in a general sense as a means of assessing the merit of an investment or business decision. 'Return' generally means profit before tax, but clarify this with the person using the term - profit depends on various circumstances, not least the accounting conventions used in the business. In this sense most CEO's and business owners regard ROI as the ultimate measure of any business or any business proposition, after all it's what most business is aimed at producing - maximum return on investment, otherwise you might as well put your money in a bank savings account.
In simple terms this is the profit made from an investment. The 'investment' could be the value of a whole business in which case the value is generally regarded as the company's total assets minus intangible assets, such as debt. or the investment could relate to a part of a business, a new product, a new factory, a new piece of plant, or any activity or asset with a cost attached to it.
The main point is that the term seeks to define the profit made from a business investment or business decision. Bear in mind that costs and profits can be ongoing and accumulating for several years, which needs to be taken into account when arriving at the correct figures.
By Barry Norman, Investors Trading Academy

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Investor Trading Academy

ZACH DE GREGORIO, CPA
www.WolvesAndFinance.com
CORRECTION: I mispoke at 7:31 and use the term "debtor" when the correct term is "creditor."
If you work in accounting or corporate finance, you need to know accounting ratios. You need to be able to understand them and speak intelligently about them. They are very useful in running an organization. Let me give you a few examples. If you are an auditor, one of the things you do is look at a company’s ratios. If you are making an investment decision, you compare companies by looking at their ratios. If you are a CEO, one of the ways you evaluate your performance is based on ratios. There are many different ways ratios can help you make better business decisions.
What is a ratio? A ratio is a comparison of two different numbers with a meaningful relationship. There are two parts to this. There is a calculation and then there is the meaning. And you can look at ratios externally or internally. Looking externally, you are comparing different companies. Looking internally, you are analyzing your own company’s performance and seeing how ratios change over time. There are hundreds of different ratios out there. My goal is to give you an introduction into how ratios work, so I am going to talk through three different ratios.
The three ratios we are going to talk about are:
• Profit Margin
• Asset Turnover
• Financial Leverage
Neither Zach De Gregorio or Wolves and Finance Inc. shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.

Views: 435
WolvesAndFinance

Profit margin is important but what finally matters is the bang for the buck we have got.. Hence, return on investment is what matters most..”

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Dr. Abhijit Phadnis

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!

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MBAbullshitDotCom

Financially speaking, a company's expense ratio to sales ratio is very important as if the sales ratio is high but the expense ratio is also high, that leads to a narrow profit margin. Avoid having a narrow profit margin by keeping expenses down with tips from a registered financial consultant in this free video on finance and investment.
Expert: Patrick Munro
Contact: www.northstarnavigator.com
Bio: Patrick Munro is a registered financial consultant (RFC) with outstanding sales volume of progressive financial products and solutions to the senior and boomer marketplace.
Filmmaker: Reel Media LLC

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eHow

For investors wanting to do a quick and dirty check on whether a firm is cheap or expensive, multiples can be helpful. As part of his short series on valuing companies, Tim Bennett explains why and how to go about using them.

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MoneyWeek

OpenMarkets Online Investment
Module 4
Ratio analysis: Profit margin ratio
This video discusses the profit margin ratio, and what it can tell the fundamental analyst about a company.
Visit the OpenMarkets Australia website to learn about how Australia's newest stock broker can help you invest with low brokerage fees and our innovative new WebTrader platform.

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OpenMarkets Australia

class 12 Accounts
accounting ratios
return on investment
accounts adda video 113
our website
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Accounts Adda

Introduction to Managerial Finance: Profitability Ratios

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LearningSims

hello, friends today's video concept is what is P/E ratio and what is benefits this ratio.

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Trading Chanakya

Learn how to analyze a rental property with the unique "four square" method and make sure your next rental property investment is a cash cow!
In this video from BiggerPockets.com, Brandon Turner (author of The Book on Rental Property Investing and co-host of the BiggerPockets Podcast) shares with you the step by step method for determining the monthly cash flow and cash on cash return for any rental property investment.
Calculating the numbers on a rental property doesn't need to be difficult - and this video proves it.

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BiggerPockets

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: 13295
Bernd Meyer

This video walks through the calculation and interpretation of the gross profit margin, operating profit margin, net profit margin, return on assets, return on equity, price-earnings, market-book, and dividend-yield ratios

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Kevin Bracker

पी ई रेश्यो यानी मूल्य आय अनुपात. किसी शेयर का PE Ratio यानी मूल्य आय अनुपात जान कर बहुत आसानी से यह अंदाजा लगाया जा सकता है कि शेयर की कीमतों में बढ़ोतरी की कितनी संभावना है. इसी प्रकार पूरे बाजार का PE Ratio देख कर आप बाजार के बढ़ने की संभावनाओं का अंदाजा भी लगा सकते हैं. किसी एक उद्योग या वर्ग के शेयरों का PE Ratio देख कर भी आप यह अंदाजा लगा सकते हैं की उनमें बढ़ने की संभावना है या नहीं
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Yadnya Investment Academy

http://accountingcollege.co.uk/ Ratios are a topic that comes up repeatedly in ACCA exams. This video provides students with revision theory for Gross Profit Margin, Net Profit Margin, Operating Profit Margin, Operating Ratio,
Asset Turnover, Return on Capital Employed, Earnings before interest, taxes depreciation and amortisation

Views: 3733
Accounting College

PE ratio is one of the most widely used tools for stock selection. It is calculated by dividing the current market price of the stock by its earning per share (EPS). It shows the sum of money you are ready to pay for each rupee worth of the earnings of the company.
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Yadnya Investment Academy

Project management topic on Capital budgeting techniques - NPV - Net Present Value, IRR - Internal Rate of Return, Payback Period, Profitability Index or Benefit Cost Ratio.

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pmtycoon

Sales assistant cover letter template

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© 2018 Quotations on life pictures

Selling in special circumstances. shares you bought at different times and prices in one company shares through an investment club shares after a company merger or takeover employee share scheme shares. Jointly owned shares and investments. If you sell shares or investments that you own jointly with other people, work out the gain for the portion that you own, instead of the whole value. There are different rules for investment clubs. What to do next. Deduct costs. Apply reliefs.