Gross Margin Ratio
Gross margin ratio measures the profitability of products — how much income each product generates after paying for its cost. It is calculated by dividing gross margins by net sales.
Gross margin ratio = (total revenue - cost of goods sold (COGS)) / total revenue
This glossary provides an overview of some key legal terms for startups. It's essential to consult with a legal professional to ensure a comprehensive understanding of these terms and their implications for your specific situation.