What are three financial rations that constitute return on revenue, and what do they tell us?

Expert Solution

1) Cost of goods sold (COGS)/Revenue

a.how efficiently a company can produce a good

2) Research & development (R&D) expense/Revenuea.indicates how much of each dollar that the firm earns inrevenue in R&D

3)Selling, general, & administrative (SG&A) expense/Revenuea.indicates how much of each dollar that the firm earns insales is invested in SG&A

Rahul Sunny answered 2 years ago

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