# Profit to Sales Ratio Calculator

###### Updated: Aug 6, 2018

In business, Profit to Sales Ratio is the ratio of net profit divided by net sales for the period, usually expressed as a percentage.

Profit To Sales Ratio:
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#### Background Information

What does Profit to Sales Ratio mean?
It is the ratio between the net profit and the total sales.
Formula
Profit to Sales Ratio = Net Profit / Net Sales × 100
Example

For example, a firm reports net profits of $50,000 and net sales are reported as$1,000,000 for the same period. According to the formula, Profit to Sales Ratio is:-

• = $50,000 ÷$1,000,000 * 100
• = 5% Profit to Sales Ratio

Created: Aug 6, 2018
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