Which ratio would be most useful for assessing product mark-up?

The gross profit percentage is the most useful ratio for assessing product mark-up because it specifically measures the difference between sales revenue and the cost of goods sold (COGS), expressed as a percentage of sales. This ratio provides insight into how much profit a company is making on its products before accounting for other operating expenses.

A higher gross profit percentage indicates that the company is effectively marking up its products relative to their costs, thus reflecting how well it is pricing its products above their production costs. This is particularly important for businesses aiming to understand their pricing strategy and overall profitability related to product sales.

In contrast, the net profit percentage considers all expenses, including operating costs, interest, and taxes, which can dilute the mark-up information that is directly related to individual products. Return on capital employed focuses on the efficiency of capital usage rather than product pricing. The current ratio relates to liquidity and does not provide any information about profitability or mark-up. Thus, for assessing how much profit is made on products sold, the gross profit percentage is the most relevant and insightful ratio.