Asked by
mahira khanam
on Oct 28, 2024
Verified
The gross profit percentage is calculated by dividing net sales by gross profit.
Gross Profit Percentage
A financial metric expressing gross profit as a percentage of total sales.
Net Sales
The total sales revenue of a company, minus the returns, allowances for damage or loss, and discounts.
Gross Profit
The difference between sales revenue and the cost of goods sold, indicating the efficiency of a company in managing its production and supply chain.
- Understand the concept and calculation of financial ratios and their importance in financial analysis.
Verified Answer
SR
Learning Objectives
- Understand the concept and calculation of financial ratios and their importance in financial analysis.