R&D%View Financial Glossary Index
R&D% (research and development expense percentage) is research and development expenses as a percentage of gross profit. Like SGA%, the research and development percentage displays a specific aspect of a company's fixed cost distribution.
In order to understand the distribution of a company's revenue towards expenses, investors observe the SGA% and other expense metrics. Though YCharts calculates R&D% as R&D Expense/Gross Profit, some sources calculate R&D% as R&D Expense/Revenue, so pay close attention to the calculation being used.
R&D% = Research & Development Expenses / Gross Profit