What is cost revenue ratio?

Running a successful venture requires tracking various important metrics, one of which is the cost revenue ratio. In a nutshell, this term refers to an indicator that measures the efficiency and productivity of a company’s sales commitment.

An efficiency ratio, which is another term that defines this metric, helps businesses to assess their success by comparing expenses and revenues generated by sales operations.

To learn your company’s sales revenue ratio just summarize your expenses and divide the sum by the total revenue generated by sales.

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