Profitability Ratio:
Profitability ratio helps to measure the profitability position of the business concern. Some
of the major profitability ratios are given below.
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 helps to measure the profitability position of the business concern. Some
of the major profitability ratios are given below.
[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
Profitability Ratio
![Profitability Ratio]()
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