Calculate expense-to-sales or inventory-to-sales ratios, solve for amount, sales, or percent, and find target spend or sales needed.
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Sales Ratio Formula
The following formula is used to calculate the Sales Ratio.
- Where SALR is the Sales Ratio (%)
- CS is the total cost of sales ($)
- VS is the total value of sales ($)
To calculate the cost-of-sales ratio as a percentage, divide cost of sales by sales and multiply by 100. Choose the ratio type and quantity to solve, enter the known values, then select Calculate. Match accounting periods; an inventory balance is compared with sales for the stated period. Sales per advertising dollar is ROAS only for sales attributed to those ads.
How to Calculate Sales Ratio?
The following example problems outline how to calculate Sales Ratio.
Example Problem #1:
- First, determine the total cost of sales ($).
- The total cost of sales ($) is given as 1,500.
- Next, determine the total value of sales ($).
- The total value of sales ($) is provided as 3,000.
- Finally, calculate the Sales Ratio using the equation above:
SALR = CS / VS * 100
The values given above are inserted into the equation below and the solution is calculated:
SALR = 1,500 / 3,000 * 100 = 50.00 (%)
Example Problem #2:
For this problem, the variables required are provided below:
total cost of sales ($) = 6,000
total value of sales ($) = 15,000
Test your knowledge using the equation and check your answer with the calculator above.
SALR = CS / VS * 100 = ?
