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Question
What is G.P. Ratio?
Short Answer
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Solution
The Gross Profit Ratio (G.P. Ratio) is a financial indicator that calculates the percentage of gross profit derived from a company’s sales. It measures how effectively a company produces and sells its goods or services after deducting the cost of goods sold. The formula for Gross Profit Ratio is:
`"Gross Profit Ratio"="Gross Profit"/"Net Revenue from Operations" xx 100`
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