Gross Profit as a percentage of sales
Sales revenue does not tell the total picture of performance. The sales revenue of a business may significantly increase with only marginal increase in actual gross profit. Gross profit as a percentage of sales provides information on the profitability of sales; that is the gross profit per $100 of sales.
The formula is:
Net profit as a percentage of sales
Net profit as a percentage of sales provides information on the profitability of sales; that is the net profit per $100 of sales.
The formula is:
