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Payroll to Net Sales

Financial ratios[None]Ratio

Definition

Total payroll (salary , wage, bonus and commission) including all FTE's (Contractors and full-time) divided by Net Sales. This ratio is used to track payroll expenses vis-a-vis sales. It is expressed as a percentage and growth in the percentage is considered negative. It is an indicator of productivity and cost control.

Formula

[Total payroll costs] divided by [Net Sales]

Tags

expense, contract, payroll, cost, full-time, productivity, growth