Connect with us

MS Excel

What is gross, net and operating profit margin and how to calculate it in Excel

Published

on

What is gross, net and operating profit margin and how to calculate it in Excel

It is natural for every company or business to have a daily management system for the profits obtained from the sales of a product. But it is very true that there are terms and data that can help facilitate this work, for this we will talk about the profit margin.

What is the profit margin?

The profit margin is the inequality between the amount of sale of an item or service, fixed and variable expenses. This in-so is related to the processes of commercialization and maintenance of a company or company.

Why is profit margin important?

For a company to function well internally, it is important to take into account everything that the profit margin implies. Knowing the difference in the price of an item and its elements involved will allow having data that will help to visualize if the applied strategy is profitable.

Taking the profit margin into account will allow a company, whether a sole proprietorship or corporate, to understand whether the distributors are the right ones to boost resources. By having a profit margin, you will be able to answer questions that arise as a project progresses, and they are these:

  1. Does the sale that is made satisfy the needs of those who make up a company or team?
  2. Is there a way to minimize the expenses that are made in the production, without affecting the quality of the product?
  3. Is the marketing strategy that is implemented to generate more profits functional and practical?

What is gross, net, and operating margin?

Next, we will show you a brief explanation in the form of an outline of what a net, gross, and operating profit margin is.

What is gross, net and operating profit margin and how to calculate it in Excel

The gross profit margin: It refers to what is earned after deducting the final price of the direct and indirect costs in the production of an item.

The net margin: It is the one that is acquired once the fixed expenses such as water, electricity, services among others that are carried out around the business are subtracted.

Operating profit margin: This is a financial percentage that measures the performance of a company, through the functions acquired before the payment of taxes and interests.

Calculate Profit Margin in Excel How?

  • Open the Excel program and create a new spreadsheet where you will use the columns ‘Revenue’, ‘Cost of Production’, ‘Profit’, and ‘Profit Margin’.
  • In the column labeled ‘Income’, you will enter the price of one of the items on offer.
  • In the column ‘Cost of production,’ you will add the total cost that involves labor plus services.
  • Identify the gross profit, this will be updated in the column ‘Profit’. Here you will enter a calculation formula that subtracts the cost of production data from the data in the Income column, the formula is = B2-C2.
  • To calculate the profit margin or percentage, you must change the formula mentioned above and it would be D2 / B2 * 100.
  • To keep a more accurate control, make a column to record the data of the number of items you sell per day. To do this, use the following formula = B2 * (plus the price of the item), where B2 corresponds to the number of products sold, and the amount you place after is the amount that the product is canceled.
  • Copy the formulation down, in order to have the totals for each item, at the same time select the addition formula and the boxes that correspond to the same data.
What is gross, net and operating profit margin and how to calculate it in Excel
  • Next, in another Excel sheet within the same file that you already have, you will create columns that have the following data ‘Fixed Expenses’, ‘Variable Expenses’, ‘Total Expenses’, and another called ‘Profit’.
  • For this new sheet to be updated exactly like the previous one, you just have to press the equal sign (=) next to the box where the total profit for the month is and press ‘Enter’.
  • To calculate the net profit, you just have to apply the formula that we have explained to you in previous steps.
  • Finally, you will write the formula that responds to the percentage margin of net profit.

We have successfully concluded this article, we hope it will be very useful and although it is a bit tedious, it is important for your company.

MS Excel

How To Use Rank Function in Microsoft Excel for Beginners

Published

on

How To Use Rank Function in Microsoft Excel for Beginners

Surely you all know the Microsoft Excel application. Microsoft Excel is an application or software that is useful for processing numbers. As you already know, this application has a lot of uses and benefits.

The usefulness of this application is that it can create, analyze, edit, Rank, and sort several data because this application can calculate with arithmetic and statistics.

This tutorial will explain how to sort or rank data using Microsoft Excel.

How to Rank in Microsoft Excel

You can rank data in Microsoft Excel. By using the application, you can easily do work in processing data. Ranking data is also very useful for those who work as teachers.

Because this application can rank data in a very easy way and can be done by everyone. Here are ways to rank data in Microsoft Excel:

1. The first step you can take is to open a Microsoft Excel worksheet that already has the data you want to rank. In the example below, I want to rank students in a class by sorting them from rank 1 to 7 You can also rank according to the data you have.

How-to-use-Rank-function-in-Microsoft-Excel

2. After that, you can place your cursor in the cell, where you will rank the cells in the first order. You can see an example in the image below.

How to Rank in Excel

After that, you can write a formula to rank in Microsoft Excel in the fx column. And here’s the formula, =rank(number;ref;order) .

The meaning of the formula is = Rank Rank, which means it is a rank function. And (number; ref; order) means the initial cell number that has a value to be ranked, its reference, and the final cell number that has a value to be ranked, the reference.

The formula is =Rank(D3;$D$3:$D$9;0) in the example below. After entering the function, you can press the Enter key on your keyboard. And here are the results, namely the ranking on data number 1, which has a ranking of 1.

How to Rank in MS Excel

3. If you want to do the same thing to all data as in data number 1, you have to copy the previous column, and then you can block the column below it and click Paste. Then you can see the results. All the columns in the Rank entity have been ranked in such away.

Rank function in MS Excel

4. The results above are not satisfactory because the data is still not sorted, so it looks messy. We must make it sequentially according to the ranking from the smallest to the largest, and this example must be sorted from rank 1 to rank 9.

The way to sort it is to block the contents of all tables, but not with the column names and the contents of the column number.

Rank in Excel

5. After that, you can do the sorting by going to the Editing tool, clicking Sort & Filter, and then clicking the Custom Sort option…

How to Rank in MS Excel for Beginners

6. Then the Sort box will appear, where you have to choose sort by with the Rank option, some kind on with the Values ​​option, and order with the Smallest to Largest option. After that, you can click OK.

Rank in MS Excel for Beginners

7. Below is the result of the sorting we have done above. In this way, the data that has been ranked will be sorted according to its ranking.

Rank in MS Excel

That’s the tutorial on how to rank using Microsoft Excel. Hopefully, this article can be useful for you.

Continue Reading

MS Excel

How to Move Tables from Excel to Word Easily

Published

on

How to Move Tables from Excel to Word Easily

Microsoft Office Excel is useful as a spreadsheet worksheet document famous for microcomputer activities on Windows platforms and other platforms such as Mac OS. With this excel, the data can be more structured and have handy capabilities.

As for the other product, Word is better known as a word processing application. Where has a WYSIWYG concept, namely ” What You See is What You Get.” This application program is also one of the best made by Microsoft that people on various user platforms widely use.

With the presence of these two application programs, it is expected to make work easier and make your work more optimally as desired.

Like wanting to move an Excel table to Word, how do you get the table you’re moving to match its source. This article will discuss how to transfer tables from Excel to Word quickly and how you want.

How to Move a Table from Excel to Word

One of the features provided to solve this problem is the copy-paste feature, which you must be familiar with. This copy function is to copy something and paste it by pasting it according to what has been copied. Paste also has several more functions, including the following:

Keep Source Formatting: Paste function in this option to maintain the appearance of the original Text according to the source that has been copied.

Use Destination Styles: This option is to format the text to match the style applied to the Text.

Link & Keep Source Formatting: In this option to maintain the link to the source file and display the original text according to the source that has been copied

Link & Use Destination Style: This function maintains a link to the source file and uses a text format that matches the style applied to the Text.

Keep Text Only: This option is only for pasting Text only. So all the formatting of the original text will be lost.

It’s a good idea to determine if you want to move the Excel table to Word with which function you need more. Let’s go straight to the steps to move an Excel table to Word.

1. Open your Excel file that contains the document you want to move to Word.

2. Before copying the table, make sure you give the table a border so that when it is transferred to Word, the results are neat. Block the table, then click Borders as indicated by the arrow.

How to transfer Tables from Excel to Word Easily

3. Then select All Borders.

Transfer Tables from Excel to Word

4. The table has been given a border for a neater result. Next, block the table, then right-click> Copy. Or you can use the Ctrl + C keys.

Move Tables from Excel to Word

5. In the Word document, just right-click> Paste. Or you can press Ctrl + V.

How to shift Tables from Excel to Word

6. The result will be like this, exactly like the one in Excel.

How to switch Tables from Excel to Word

This is a tutorial on how to move tables from Excel to Word. Many features have never been used at all. So it’s a shame if we don’t try the features provided, moreover these features are handy for us. So many tutorials this time, hopefully, are useful for you.

Continue Reading

MS Excel

How to Create a Table in Microsoft Excel

Published

on

How to Create a Table in Microsoft Excel

How to create a table in Microsoft Excel is very easy, you know, because basically, Excel consists of tables and a number processor.

The use of internal tables in this number processing software has become one of the things that are definitely needed, guys. Especially if you play with a lot of data in it.

However, until now there may still be many who do not know how to make it. Therefore, we will provide a complete tutorial for you.

But before going into the steps, you need to know a few things about the following table.


Table of Contents :


HOW TO CREATE A TABLE IN MICROSOFT EXCEL

Create a Table in Microsoft Excel

Before creating a table, make sure you already have the data and already know what kind of table you want to create.

Btw, do you know what a table is? And how is it different from tables in other software?

What is a Table in Excel?

Tables are a feature that can help you group data together, so the data you have is easier to read.

Like tables in general, this number processing software also consists of columns and rows that you can adjust the amount according to your needs.

Table Functions in Microsoft Excel

The main function of a table in Excel is to add rows of data without changing the writing structure that has been created.

No less important, the tables in this number processing software can serve to make your data look more attractive and easy to understand.

You can edit the table as needed, so the existence of the table feature is very important for making a data report.

How to Create a Table in Microsoft Excel

To make it is quite easy, you know. Do not believe? Take a look at the tutorial below.

If you think how to create a table in Microsoft Excel requires additional applications, then you are wrong guys. Because you can create tables directly, without third-party applications. So, this is the way.

  • The first step, open Microsoft Excel on your PC.
  • The block of data that you want to insert into the table.
  • Then, click Insert – Table.
  • Then, make sure the data you want to enter into the table is correct.
  • Finally, click OK.

Finished! If you think the table made is less attractive, you can edit it on the Table Style menu. In addition, you can also change the color of the column to make it easier for others to read.

How? How to make a table in Microsoft Excel is really easy, right?

So, good luck with that!

Continue Reading
Advertisement

Latest

Who Invented Lithium ion Battery Who Invented Lithium ion Battery
Wiki4 months ago

Who Invented Lithium ion Batteries

SHARE More Imagine a world without smartphones, laptops, or electric cars. Crazy, right? These amazing devices rely on a powerful...

Who Invented SSD Who Invented SSD
Wiki4 months ago

Who Invented SSD : A Journey From Invention To Innovation

SHARE More The dominance of Solid State Drives (SSDs) in modern data storage is undeniable. Their lightning-fast performance, superior reliability,...

Google Gemini Google Gemini
Wiki4 months ago

Google Gemini: Your Super-Smart AI Sidekick (Made Easy!)

SHARE More Imagine a helpful friend who can write emails, translate languages, dream up creative ideas, and even write code!...

Who Invented Gorilla Glass Who Invented Gorilla Glass
Wiki5 months ago

Who Invented Gorilla Glass for Mobile: Unveiling the Inventor and Its Impact

SHARE More In the ever-evolving landscape of mobile technology, Gorilla Glass has emerged as a revolutionary material, providing durability and...

The Evolution of Touch Screen Technology A Journey into its Inventors and Innovations The Evolution of Touch Screen Technology A Journey into its Inventors and Innovations
Wiki5 months ago

The Evolution of Touch Screen Technology: A Journey into its Inventors and Innovations

SHARE More Touch screen technology has become an integral part of our daily lives, seamlessly blending with our smartphones, tablets,...

The Evolution of Memory Cards: Unraveling the Inventors Behind the Innovation The Evolution of Memory Cards: Unraveling the Inventors Behind the Innovation
Wiki5 months ago

The Evolution of Memory Cards: Unraveling the Inventors Behind the Innovation

SHARE More In the fast-paced world of technology, memory cards have become an indispensable part of our daily lives. From...

Who Invented Sim Card Who Invented Sim Card
Wiki6 months ago

Who Invented Sim Card | The Origin and Inventor of the SIM Card: A Revolutionary Communication Breakthrough

SHARE More In today’s digitally interconnected world, the SIM card stands as a tiny yet indispensable component of our daily...

Walkie-Talkies Walkie-Talkies
Wiki7 months ago

Who invented Walkie-Talkie | Exploring the Wonders of Walkie-Talkies: A Simple Guide for Beginners

SHARE More Walkie-talkies, often fondly referred to as “woki tokies,” are incredible communication devices that have stood the test of...

Who Invented Camera Lens Who Invented Camera Lens
Wiki7 months ago

Who Invented Camera Lens : A Revolutionary Innovation in Photography

SHARE More The invention of the camera lens stands as a pivotal milestone in the history of photography, fundamentally altering...

Who Invented Radio Who Invented Radio
Wiki8 months ago

The Evolution of Radio Broadcasting: Who Invented Radio?

SHARE More Radio broadcasting has been a cornerstone of communication, entertainment, and information dissemination for over a century. It revolutionized...

Trending

Share via
Copy link
Powered by Social Snap