Menu
Ratio Analysis
What is the difference between operating ratio and profit ratio?
Replies (3)
There are 3 types of profit ratios: operating, net profit and gross profit ratio. These profit ratios are calculated by dividing profit to net sales. More higher, more better.
Operating ratio is found by dividing operating expenses to sales. It is a measure of efficiency. The lesser it is, the better.
There are 3 types of profit ratios: operating, net profit and gross profit ratio. These profit ratios are calculated by dividing profit to net sales. More higher, more better.
Operating ratio is found by dividing operating expenses to sales. It is a measure of efficiency. The lesser it is, the better.
That was a clear reply , Thank you!
Recent Topic
- How to show Capital Gain on gifted property
- TIS Glitch Alert : inflated summary
- IT returns of partners
- Challan status in Payment Failed but amount deduct
- Sec 54 exemption
- Query regarding retirement benefits
- TDS Payment and filing
- Capital gains exemption under sec 54
- Revamped traces portal, conso file download failed
- Due date of ITR for Option Trader
Related Topics
CAclubindia
