The gross profit percentage is an indicator of how well a company is positioned to pay off its short-term liabilities.

Question

Quizplus · Accepted Answer

The gross profit percentage is an indicator of a company's profitability, not its ability to pay off short-term liabilities. It is calculated by dividing gross profit by revenue and expressing the result as a percentage. The higher the percentage, the more efficient the company is at generating profits from its revenue.

The Gross Profit Percentage Is an Indicator of How Well