Cost of Sales as a Percentage of Sales

This Financial Manager ratio indicates the cost of purchasing goods, manufacturing goods, or providing services, in relation to the revenue from sales.

The calculation for ratio is

where:

Cost of Sales = the sum of all Cost of Sales account types

Sales = the sum of all Income account types

Example

If cost of sales is $30,000 and sales are $100,000, then cost of sales as a percentage of sales is 30%.

The calculation for this example is