The ratio measuring the relationship between gross profit and net sales.

Question

Give one word/term/ phrase for the following statement

The ratio measuring the relationship between gross profit and net sales.

Answer 1

Gross profit ratio

Explanation: It is the ratio based on net sales and gross profit earned. It is used to assess the profitability of the core business. It reflects the efficiency with which a firm produces its products. Higher the gross profit, better is its financial performance.