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Question
Give one word/term/ phrase for the following statement
The ratio measuring the relationship between gross profit and net sales.
One Word/Term Answer
Solution
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.
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Introductions to Gross Profit Ratio
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