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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
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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
Profitability Ratio Profitability Ratio Reviewed by Ikpokolo Francis on Tuesday, February 28, 2017 Rating: 5

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