Profit Margins Explained in One Minute: From Definition/Meaning to Formulas and Examples

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One Minute Economics
Published at : 27 Oct 2020
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Profit margins represent one of the most popular indicators investors use to assess the viability of a potential or existing investment. It's quite remarkable how a simple data point with a simple formula (or let's say formulas: one for the gross profit margin, one for the net profit margin, one for the operational profit margin and so on) can be so widely-used, so it would be a shame not to properly understand what profit margins are all about.

Through this video, the concept is explained in just one minute, from definition and meaning to the various formulas you can use, along with examples of course!

In a nutshell, you will understand what the profit margin is as well as how to calculate it properly in just one minute. The definition is straightforward, the formulas are straightforward as well and the examples used in this video will make it crystal-clear just how easy it is to wrap your head around profit margins.

Of course, before watching this video about profit margins, I'd recommend checking out the video in which revenue and net income/profits are compared, just so you can be certain that you have a solid foundation. The link to the video in question is shared as a card, or you can simply click on the link below:

https://www.youtube.com/watch?v=kmOj1usAmKM
profit marginprofit marginsprofit margins explained

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