Advertising to Sales Ratio = advertising costs / sales
Advertising to Sales Ratio = 1/ sales to advertising
ratio
The
advertising to sales ratio calculates the
extent to which advertising is a cost of sales.
It is
the inverse of the sales to advertising ratio
of return on advertising.
A ratio
above 0.1:1 (10%) is of concern because it indicates
that advertising is not generating over 10 times its
cost in sales.
The
advertising to sales ratio is included in
the financial statement ratio analysis spreadsheets
highlighted in the left column, which provide
formulas, definitions, calculation, charts and
explanations of each ratio.
The advertising to sales
ratio is listed in
our other
accounting ratios.
See list
of ratios , or the financial statement ratio
analysis spreadsheets which are not highlighted in the
left column, to see which other ratios are calculated
and explained in our spreadsheets.
Click here
to order excel
accounting spreadsheet to calculate 15 ratios with
formulas, definitions, calculations, charts, and
explanations for each ratio.
The Overhead to Direct Labour
ratio may be included in our
custom 1, 3 or 5 period financial
statement ratio analysis spreadsheet.
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