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Glossary > R&D to Sales

Research & Development to Sales, TTM

What does R&D to Sales mean?

This is calculated by dividing Research & Development Expense by total sales or revenue. R&D expense is not always broken out in a company's financials, however, so this value may be n/a in those cases.



Stockopedia explains R&D to Sales...

This metric is useful in comparing the effectiveness of R&D expenditures between companies in the same industry. It is less obvious across industries - for example, pharmaceuticals and software companies tend to spend a lot on R&D while consumer product companies spent less.