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Cost return ratio = Net profit / Total cost (expenses)
Cost return ratio = Net profit / Total cost (expenses)
Return on Total Cost is one of the main types of profitability required for efficiency analysis. Cost profitability is also called production profitability, as this indicator reflects the efficiency of the production process.
Return on cost shows how many rubles (kopecks) of profit from sales will be brought by one ruble invested in the cost of production. Or, measured as a percentage, this indicator reflects how efficient the use of production resources is.
The online calculator calculates the return on cost ratio – ROTC.