to calculate quality ratio:
Ratio = 1 - (sales returns and allowances / sales).
ratio definition and explanation:
ratio, or product quality ratio, indicates the extent of acceptance (in dollar
terms) of the product or services sold.
analyst should look to see whether the quality is
increasing or decreasing.
decrease in the quality ratio indicates declining product quality, which may
lead to decreasing sales or profit margins.
The quality ratio is included in the financial
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