Scrab 2.0 is here!
See what's new

R&D to Revenue

The R&D to Revenue metric is a financial ratio used to measure a company's R&D investment effectiveness in generating revenue. To calculate this ratio, a company's total R&D expenses are divided by its total revenue. The resulting percentage indicates the amount of revenue generated from R&D investment.

Investors and analysts often use the R&D to Revenue metric to assess a company's R&D efficiency and its ability to turn R&D investment into revenue growth. A high ratio is generally seen as a positive indicator of effective R&D investment, while a low ratio may suggest inefficient use of R&D investment.

However, it is important to note that this metric should not be used in isolation when evaluating a company's R&D investment. Other factors, such as the quality of R&D activities, the strength of the company's intellectual property portfolio, and the competitive landscape in the industry, should also be considered.


Apple's R&D to Revenue ratio for fiscal year 2021 was 8.7%, indicating that the company spent $8.70 on R&D for every $100 of revenue. While this ratio is relatively low compared to other tech companies, it reflects Apple's focus on optimizing its existing product line rather than investing in new technologies.

Start your 7-day free trial

Automate your research and quickly find undervalued stocks.
Get Started →
No credit card required
Cancel anytime