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The gross margin ratio: Is also called the net profit ratio. Indicates the percent of sales revenue remaining after covering the cost of the goods
The gross margin ratio:
Is also called the net profit ratio.
Indicates the percent of sales revenue remaining after covering the cost of the goods sold.
Is also called the profit margin.
Is a measure of liquidity and should exceed 2.0 to be acceptable.
Should be greater than 1 for merchandising companies.
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