Asked by
Simeon Lawrence
on Oct 16, 2024
Verified
The gross margin ratio is defined as gross margin divided by net sales.
Gross Margin Ratio
A financial indicator that calculates the disparity between sales and the cost of goods sold, represented as a portion of sales revenue.
Net Sales
The total revenue from sales reduced by returns, allowances for damaged or missing goods, and discounts.
- Understand the calculation and interpretation of financial ratios like the gross margin ratio to evaluate a company's operational efficiency.
Verified Answer
GG
Learning Objectives
- Understand the calculation and interpretation of financial ratios like the gross margin ratio to evaluate a company's operational efficiency.
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