Cost Revenue Ratio Calculator

Gross profit revenue cost.

Cost revenue ratio calculator. Let us take the example of another company to understand the concept of cost of sales in further detail. Management must regularly execute ratio analysis to calculate the cost and earnings developments of. It helps to identify the relationship between the cost and benefits of a project. At the beginning of the year the company had an inventory of 5 000 units that are worth 50 each.

For net profit net profit margin and profit percentage see the profit margin calculator. This calculator will calculate any three of the sales values based on any 2 inputs that you provide. The ratio is calculated by dividing the variable costs by the net revenues of the company. In this example 150 000 divided by 275 000 gives a cost to income ratio of 0 545.

Management may need to reduce costs or perhaps discover the reason why revenue has decreased. When the cost to sales ratio will be increasing what this means is possibly costs are on surge or revenue has dropped in line with the expenditures. The company will usually express this as a percentage being a 54 5 percent cost to income ratio. Return on revenue ratio net income total sales revenue similar to the net profit margin ratio to find this ratio you just need to take the net income and then divide it by the total sales revenue.

It also has an operating income of 275 000. Revenue selling price. For example divide 450 000 in non interest expense by the 1 million sum of net interest income and non interest income. Markup gross profit cost.

Gross margin gross profit revenue revenue price selling price. Calculate the gross margin percentage mark up percentage and gross profit of a sale from the cost and revenue or selling price of an item. The variable cost ratio is a cost accounting tool that is used to express a company s variable production costs as a percentage of its net sales. An online cost benefit ratio calculator to calculate the benefit cost ratio by entering the discount rate direct costs indirect costs direct benefits and indirect benefits.

Cost of sales formula example 2. Benefit cost ratio is used as an indicator in cost benefit analysis. Include all the costs associated with production and sales. To find the cost to income ratio divide acme s operating expenses by its operating income.

The net revenue of the company includes the sum of its returns allowances and discounts subtracted from. Divide the bank s total non interest expense by the sum of its net interest income and non interest income to determine its expense to revenue ratio.