R&D%

View Financial Glossary Index

Definition

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.

Formula

R&D% = Research & Development Expenses / Gross Profit

Analysis Tutorial

Are you an investing professional?

Click here to request a live demo of YCharts Professional, our premium suite of tools and data.
Learn more about our professional products. Call (866) 965-7552 or email sales@ycharts.com

Advertisement

{{root.upsell.info.feature_headline}}.

{{root.upsell.info.feature_description}}

Please note that this feature is only available as an add-on to YCharts subscriptions.


Please note that this feature requires full activation of your account and is not permitted during the free trial period.

Start My Free Trial {{root.upsell.info.call_to_action}} No credit card required.

Already a subscriber? Sign in.