Question

The ratio measuring the relationship between gross profit and net sales. Answer in a word / phrase / term.

Answer 1

Answer:

Gross profit ratio

Explanation:

The ratio between the gross profit and the net sales are referred as Gross profit ratio.

$Gross\  profit\ ratio= \frac{gross\ profit}{net\ sales}$

Gross profit ratio is also called Gross profit margin. It is generally used to analyze how much money a company makes on each sale of its product, before taking into account the sales, marketing and administrative costs of a company.

Answer 2

The ratio measuring the relationship between gross profit and net sales is known as the Gross Profit Ratio.

Explanation:

• Gross Profit Ratio is the ratio which is based on the net sales and gross profit earned.

• GPR aims to assess the profitability of the firm.

• It shows the efficiency with which a firm produces its goods.

• Higher the gross profit, superior is its financial performance.
• The formula of Gross Profit Ratio is:

                                      $Gross Profit Ratio=\frac{Gross Profit}{Net Sales}$