top of page

Performance Ratio

Performance ratios, which are calculated based on data extracted from the revenue and combined expenses categories on the income statement, play a crucial role in gauging a business's proficiency in profit generation. These ratios serve as essential tools for assessing the company's financial prowess and its capacity to convert its operational activities into a profitable outcome. Among the array of performance ratios, two stand out as particularly significant: the gross profit ratio and the net profit ratio.

bottom of page