Cost of Sales to Revenue Ratio is an indicator helping to measure the performance of a company. It compares the expenses generated by sales activities with the company’s revenue.
Within this framework it is recommended to :
– determine the company budget,
– be familiar with periodic reports -they will help you observe deviations from forecasts,
– make adjustments if necessary, draw conclusions.
How is the Cost of Sales to Revenue Ratio calculated?
Divide costs by total revenue
