The gross profit ratio is

The gross profit ratio is

Let's get to know first what is the gross margin ratio.

Gross Profit Margin is a type of financial ratio that compares profits to sales. to measure the performance of the business

So how is the gross profit ratio calculated?

The above profit ratio formula is as follows:

Gross Profit Ratio = Gross Profit (can be calculated by subtracting revenue and cost) / Sales x 100

So what does each gross profit ratio mean?

If the gross margin ratio is high, it indicates that the business is profitable and has control over its cost budget. But if it is valuable, it indicates that the business is not profitable and the cost budget is poorly controlled.

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