Question

Gross profit ratio measure the overall profitability of a company true of false

Answer 1

Gross profit is a measure of the overall profitability of a company

False

Answer 2

$\large \green{ \fcolorbox{gray}{black}{ ☑ \: \textbf{Verified \: answer}}}$

FALSE

Gross profit margin is a measure of a company’s profitability, calculated as the gross profit as a percentage of revenue.

$\sf{ \gray{Gross \: Profit \: Ratio }= \frac{ Gross \: Profit}{ Net \: sales. }}$

$\sf{ \gray{Gross \: Profit \: Ratio} = \frac{ Gross \: Profit} {Net \: Sales}x 100.}$