The gross profit ratio is the ratio of gross profit to ........

Accountancy (Phase -I & II) Ratio analysis

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The gross profit ratio is the ratio of gross profit to

Net cash sales

Net credit sales

Closing stock

Net total sales

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Explanation:

Gross profit (GP) ratio. Gross profit ratio (GP ratio) is a profitability ratio that shows the relationship between gross profit and total net sales revenue. It is a popular tool to evaluate the operational performance of the business . The ratio is computed by dividing the gross profit figure by net sales.