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EBT % of Gross Profit

Department:

Parts Department

EBT % of Gross Profit

%

Calculation

(Earnings before taxes / Gross profit) * 100.

DESCRIPTION

The earnings before taxes as a percentage of the dealership's gross profit.

Purpose

To understand how much of the gross profit is retained as earnings before taxes.

Interpretation

Did you get it right

Optimal:
A higher percentage shows efficient control over operating expenses and cost management.
Alert:
A low percentage could indicate high operating costs or inefficiencies.
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06/15/2024 04:39:08 am