Definition of Berry ratio:
This method is used to determine a companys financial status at any time during the current fiscal period. The ratio is determined by taking the gross income over the amount of operational costs.
The Berry ratio compares a company's gross profit to its operating expenses. This ratio is used as an indicator of a company's profit in a given period. A ratio coefficient of 1 or more indicates that the company is making a profit above all variable expenses, whereas a coefficient below 1 indicates that the firm is losing money.
The formula is as follows:.
Meaning of Berry ratio & Berry ratio Definition