Question

Which ratio would you use to determine the profitability of the goods sold by a company?

Answer 1

Answer:

Margin ratios represent the company's ability to convert sales into profits at various degrees of measurement. Examples are gross profit margin, operating profit margin. It is a profitability ratio measuring revenue after covering operating and non-operating expenses of a business

Explanation:

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Answer 2

Answer:

Gross profit margin

Explanation:

profitability proportions, having a higher worth comparative with a contender's proportion or comparative with a similar proportion from a past period shows that the organization is getting along admirably. Productivity proportions are most valuable when contrasted with comparable organizations, the organization's own set of experiences, or normal proportions for the organization's business.

Gross Profit Margin is one of the most generally utilized benefit or edge proportions. Net benefit is the contrast among income and the expenses of creation — called cost of merchandise sold (COGS).

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