Berry Ratio


DEFINITION of 'Berry Ratio'

The ratio of a company's gross profits to operating expenses. This ratio is used as an indicator of a company's profits in a given period of time. A ratio coefficient of 1 or more indicates that the company is making profit above all variable expenses, whereas a coefficient below 1 indicates that the firm is losing money.

The formula is as follows:

Berry Ratio


This ratio attempts to measure a firm's profitability. A higher coefficient means that the firm is more profitable, while a lower coefficient means the firm in not as profitable. Using this method in conjunction with other profit-level indicators will ensure a higher level of validity.

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    A financial benefit that is realized when the amount of revenue ...
  5. Expense

    1. The economic costs that a business incurs through its operations ...
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    A measure of what it costs an investment company to operate a ...
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