Gross Profit Margin (GPM) is ratio between Gross Profit and Sales Revenue. It compares Gross Profit with Sales Revenue.
Posts published in “RATIO ANALYSIS”
Internal Users and External Users of Final Accounts will find Ratio Analysis of great help when making business decisions.
Each stakeholder group will want to know different information about a business, therefore will analyze Final Accounts differently.
After a brief introduction to five different types of ratios in the last article, let’s take a look at those accounting ratios with more details.
Different types of ratios are used to analyze information from Profit and Loss Account (P&L Account) and Balance Sheet to judge financial performance.
Ratio Analysis helps to compare business performance using historical comparisons and using current comparisons between different companies.
Ratio Analysis is a quantitative management tool used for analyzing the financial performance of a business organization.