Gross Profit Margin Ratio

Gross Profit Margin Ratio Calculation







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Out put

Gross profit margin ratio formula & calculator may used to find the ratio of gross profit to total revenue of a company. It's a finance or accounting tool for performance analysis to measure how profitable a company is by calculating how efficiently a company control its costs on materials, employees, wages and other resources. A higher gross profit margin ratio generally indicates that the company is efficiently control its costs retain more profit on its each sales and a lower ratio indicates that the company is making less profit on each sales spending more on developing products and services.

Formula
Gross Profit Margin Ratio = Gross Profit/Total Revenue