What is profitability ratio formula?
This ratio measures the overall profitability of company considering all direct as well as indirect cost. A high ratio represents a positive return in the company and better the company is. Formula: Net Profit ÷ Sales × 100 Net Profit = Gross Profit + Indirect Income – Indirect Expenses Example: Particulars. Amount.
Related posts:
- What are the four financial performance ratios? - 4 Financial Performance Ratios Every Contractor Needs... (Read more)
- How do you calculate performance ratios? - Calculate the ratio by dividing the current... (Read more)
- What are 2 types of ratios? - In general, a ratio is an expression... (Read more)
- What is ideal profitability ratio? - Profitability ratios assess a company's ability to... (Read more)
- What are the best ratios for investors? - Between the numbersWe bring you eleven financial... (Read more)
- What is the formula of gross profit? - Gross Profit is the income a business... (Read more)
- What is the gross profit margin ratio? - The gross profit margin ratio shows the... (Read more)
- Can gross margin be greater than 100? - Margins can never be more than 100... (Read more)
- What does a gross profit margin of 20% mean? - The ratio indicates the percentage of each... (Read more)
- Is high gross profit margin good? - The gross profit margin ratio analysis is... (Read more)