Question

what is the formula of gross profit ratio?​

Answer 1

Answer

The following formula/equation is used to compute gross profit ratio:

Gross profit ratio=gross profits/net sales

When gross profit ratio is expressed in percentage form, it is known as gross profit margin or gross profit percentage. The formula of gross profit margin or percentage is given below:

gross profit ratio=gross profit/net sales *100

Answer 2

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

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