Ratio Analysis
shankar (chennai) (130 Points)
24 March 2019
Lisha Bansal
(CA Finalist)
(2595 Points)
Replied 26 March 2019
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.
Lisha Bansal
(CA Finalist)
(2595 Points)
Replied 26 March 2019
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.
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"