Ratios | Ratio Analysis | Profitability Ratios | Gross Margin | Net Margin | ROCE | CSEC PoA

In this video I explain how to calculate four (4) profitability ratios:

- the Gross Margin,
- the Net Margin,
- the Operating Expense Margin, &
- the Return on Capital Employed

This video is aimed primarily at CSEC students as the level of analysis illustrated is relatively superficial.

CAPE students might find it good as an introduction to the calculation of the ratio but will not find the level of analysis sufficient for their purposes.

Another series more suited to CAPE Accounting will follow in the future.

You can use the time stamps below to go to specific parts of the video.

00:10 - Intro/Explanation of what ratios are and their use
04:19 - What is profitability?
08:55 - Gross Margin
14:30 - Net Margin
18:08 - Operating Expense Margin
20:10 - Error - Net Margin should be Op. Ex Margin for the example
21:09 - Return on Capital Employed
27:33 - Outro

You can view the entire Ratios playlist using the link below:
   • Ratio Analysis for CSEC (2021)  

If you find that I'm moving too quickly in this video remember:

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