Define Gross profit ratio.
Chapter10: Inventory
Section: Chapter Questions
Problem 1Q: What is meant by the term gross margin?
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Define Gross profit ratio.
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Step 1: Definition
Ratio analysis:
The analysis of a company using the financial ratios and comparing its trends and measure its performance within the company and the companies of the industry is known as ratio analysis. The main categories of ratio analyses are liquidity ratios, profitability ratios, activity ratios, and leverage ratios.
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