Practice - Profitability Ratios
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
What is the formula for the Net Profit Ratio?
💡 Hint: Remember, it reflects the profit margin relative to sales.
Define Gross Profit Ratio.
💡 Hint: Think about what profit remains after covering production costs.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does the Gross Profit Ratio measure?
💡 Hint: Think about what comes after production costs from sales.
True or False: A higher Net Profit Ratio is better.
💡 Hint: Consider how much profit you keep from sales.
1 more question available
Challenge Problems
Push your limits with advanced challenges
Calculate the Gross Profit Ratio for a company that reported Gross Profit of ₹120,000 and Net Sales of ₹500,000, discussing its implications.
💡 Hint: Focus on how much is left after costs when assessing profitability.
A business has an Operating Ratio of 85%. Analyze what this might mean for stakeholders and what actions could be taken.
💡 Hint: Think about where costs could be optimized.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.