Final answer:
The gross profit ratio is a financial metric used to assess a company's profitability. It is calculated by dividing the company's gross profit by its net sales revenue and multiplying by 100 to express it as a percentage.
Step-by-step explanation:
The gross profit ratio is a financial metric used to assess a company's profitability. It is calculated by dividing the company's gross profit by its net sales revenue and multiplying by 100 to express it as a percentage. To calculate the gross profit ratio for the year-ended December 31, 20x8, you would need the company's gross profit and net sales revenue for that period. Once you have those figures, you can use the following formula:
Gross Profit Ratio = (Gross Profit / Net Sales Revenue) * 100
For example, if the company's gross profit for the year was $100,000 and its net sales revenue was $500,000, the gross profit ratio would be:
Gross Profit Ratio = ($100,000 / $500,000) * 100 = 20%