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Q: What is gross profit ratio and its purpose?
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Where is gross profit ratio found?

[Gross Profit Ratio = (Gross profit / Net sales) × 100]


How do you calculate gross margin ratio?

gross margin ratio is calculated as >GROSS PROFIT/NET SALES


How do you work out a gross profit percentage?

gross profit divided by sales Sales = 250000 Cost = 100000 gross profit = 150000 150000 / 250000 = 60%


Gross profit ratio has been increased in first year and gross profit ratio has been decreased in second year then what is the financial position of the company?

This would completely depend on how far the gross profit ratio decreased in the second year compared to the ratio at the start of the year.


What called The difference between net sales and cost of goods sold divided by net sales?

1. Net sales - cost of goods sold = Gross profit Gross profit / Net sales = Gross profit ratio


If gross profit ratio is the same for two years what is the financial position of this company?

If the gross profit ratio is the same for two years, the financial position of the company is stable. It means the company is at the same break even point as the year before, but does not constitute growth of profit.


If gross profit ratio has been increased in first year and gross profit ratio has been decreased in second year then what is the financial position of the company?

it mean the cost of sale sale of company increase or the direct cost increase


An item that cost 90 is sold for 120 The gross profit ratio for this item is?

25%


What is the difference of gross profit and gross margin?

Gross profit is the amount of profit in dollars...gross margin is the % profit to expenses


Gross vs net income?

Gross and NetGross refers to the total and Net refers to the part of the total that really matters.Gross vs Net IncomeIn accounting, for a P&L (profit and loss statement, Gross profit, or Gross income, or Gross operating profit is the difference between revenue and the cost of making a product or providing a service, before deducting overheads,payroll, taxation, and interest payments. Net profit is equal to the gross profit minus overheads minus interest payable plus one off items for a given time period.Gross Margin vs Net MarginGross margin is the ratio of gross profit to revenue. Net margin is the ratio of net profit to revenue.Gross is the profit from the transaction without deduction. Net is the profit from the transaction after deducting cost of goods and cost of the sale (manpower, taxes, rent, etc.)


What is the difference between gross margin and gross profit?

Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.


What is the difference between operating profit and profit margin?

Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.