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Gross profit and net profit ratio

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(Querist)
02 September 2016 Hi,

Anyone can help me what is the good Gross and Net Profit Ratio. Because we are going to file our IT and we are getting our GPR nearly 44% and NPR 1.98%. Our company is a Private Limited Company and I want to know whether it is good ratio? Will it accept for any bank loan?

Please clear my doubts.

Malathi.R
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Unnikrishnan B

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Unnikrishnan B (Expert)
03 September 2016 Gross profit ratio= gross profit as per trading account/sales after sales returns

Net profit ratio =net profit ad per profit and loss account/sales after sales returns

Net profit is the figure which we transfer to balance sheet
This is my opinion
The main ratios bank look into are

1,current ratio
2,Quick ratio
3,return on tangible assets
4,return on investment
Banks usually finance up to 2. Crores by projected turn over method.
I have explained what I know about
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MALATHI.R

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MALATHI.R (Querist)
03 September 2016 Thanks for your valuable reply
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