Research & Development Expenses as a Percentage of Total Revenue


Related Articles


This is calculated by dividing Research & Development Expense by total sales or revenue.

This metric, also called R&D/Sales Ratio is useful to compare the effectiveness and efficiency of R&D expenditures between companies in the same industry.

R&D expenses differ greatly across different industries- the Drug Manufacturers generally have one of the highest R&D/Sales ratios. For example, Pfizer (PFE)'s R&D totaled to 16.5% of its revenue in 2008. Computer Software and hardware companies like Microsoft (MSFT) and Cisco Systems (CSCO) often have similarly high R&D/Sales ratios as well.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki