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The gross profit margin ratio, or gross margin ratio is included in the following highlighted FINANCIAL STATEMENT RATIO SPREADSHEETS, NOW ON SALE!

RA -  8 Basic

RA - 15

RA - 25

RA - 35

RA - 50 Professional

RA - 70 Small Business

RA - 75 Expert

RA - 100 Genius

RA - 125 Wizard

RA - 150 Extreme

 

See list of other ratio calculation formulas, definitions and explanations!

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Gross Profit Margin Ratio (Gross Margin Ratio)
gross margin ratio

Formula to calculate gross margin ratio:

 

Gross Profit Margin Ratio = gross profit / sales.

 

Gross margin ratio definition and explanation:

 

Gross profit margin ratio is also called gross margin ratio.

 

To calculate gross profit subtract cost of sales (variable costs) from sales. (i.e. gross profit = sales - cost of sales)

A low gross profit margin ratio (or gross margin ratio) indicates that low amount of earnings, required to pay fixed costs and profits, are generated from revenues.

A low gross profit margin ratio (or gross margin ratio) indicates that the business is unable to control its production costs.

The gross profit margin ratio (or gross margin ratio) provides clues to the company's pricing, cost structure and production efficiency.

The gross profit margin ratio (or gross margin ratio) is a good ratio to benchmark against competitors.

The gross profit margin ratio is included in the book "Financial Statement Analysis including over 200 ratios" available for $35 (freight included). Download for $7. Spreadsheet calculators also available.

The gross profit margin ratio (or gross margin ratio) is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio. 

The gross profit margin ratio is listed in our profitability ratios.

 
The gross profit margin ratio and other ratios are key to understanding financial statements. Our ratio calculation spreadsheets reduce time and effort in calculating decision making ratios. They reduce risk for lenders and investors and enable owners, managers and consultants to increase productivity and business profits. These spreadsheets are bargain priced to provide a huge return on investment. Click here for more details.

Spreadsheets to calculate ratios (includes formulas, definitions, explanations and charts):

See list of ratios , or the financial statement ratio analysis spreadsheets which are not highlighted in the left column, to see which other ratios our spreadsheets calculate, define and explain.  

The gross profit margin or gross margin ratio may be included in our custom 1, 3 or 5 period financial statement ratio analysis spreadsheet.

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