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What is pv ratio?

Updated: 5/21/2024
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13y ago

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P/V Ratio is the relationship between the profit & sales.In formula it is expressed as P/V Ratio= Contribution/sales*100.The higher the P/V Ratio better is for company prospects.

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13y ago
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2mo ago

The PV ratio, or contribution margin ratio, is the proportion of a product's revenue that contributes towards covering fixed costs and generating profit. It is calculated by dividing the contribution margin per unit by the selling price per unit. A higher PV ratio indicates that a larger portion of each sale contributes towards covering fixed costs and generating profit.

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