The gross profit ratio (GP ratio) is a profitability ratio that depicts the connection between gross profit and total net sales revenue. It is a common method for assessing a company's operational success. The ratio is calculated by dividing gross profit by net sales.
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It is a popular method of assessing a company's operational success. The ratio is calculated by dividing gross profit by net sales. In other words, it measures how efficiently a company uses its resources and labour to manufacture and sell goods financially.
Formula
Gross Profit Ratio
Gross Profit
Net Sales
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How to calculate Gross Profit?
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Total Sales

Cost Of Goods Sold
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How To Calculate Net Sales
Gross Profit




Sales Return
Disccount
Allqwance
Sales Return