The formula for calculating the gross profit ratio is. To calculate the gross profit percentage also known as the gross profit margin the gross profit should be divided by the total revenue and then multiplied by 100. Compute the gross profit ratio GP ratio of the company.
Gross_margin 100 profit revenue when expressed as a percentage.
Usually a gross. Gross Profit Ratio Formula Gross ProfitNet Sales X 100 usually expressed in the form of a percentage From the above computations we can say that we require the. You can find it as a line item on your income statement and it is calculated by adding up all your direct inputs. Compute the gross profit ratio GP ratio of the company.