Question

What is the formula of gross profit ratio?

Answer 1

(gross profit/net sales)100

Answer 2

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

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

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