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Profitability Ratio

Profitability Ratio:

Profitability ratio helps to measure the profitability position of the business concern. Some
of the major profitability ratios are given below.

Profitability Ratio
[Post Image Courtesy of Yodiyim at FreeDigitalPhotos.net]

Gross Profit Ratio = Gross Profit / Net Sales X 100

Net Profit Ratio = Net Profit after tax / Net Sales X 100

Operating Profit Ratio = Operating Net Profit / Sales X 100

Return in Investment = Net Profit after tax / Shareholder Fund X 100

About Author Mohamed Abu 'l-Gharaniq

when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries.

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