Ratio Analysis

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.