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Net Profit Ratio Signifies: A. Profit B. Liquidity Position C. Solvency D. Operational Profitability

Financial Accounting Financial Analysis Internal Audit Internal Controls Audit Management
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Question added by Mir Mujtaba Ali , Internal Audit Manager , Confidential
Date Posted: 2014/12/25
Upvote (1) Views (21) Followers (11) Answers (9) Report Question
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Sahar Alech
by Sahar Alech , Auditor / Financial Manager , Accounting Services Office

Net profit ratio shows the operational profitability of the co. It is calculated by the formula net profit / net sales

mohamed Hakim CMA CPA Candidate
by mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

Number A and D

Raheem KIZHAKKEPAT
by Raheem KIZHAKKEPAT , Senior Audit Assistant , BRG Associates

D. Operational Profitability

Equation=Net Profit/Net Sales

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

answer is d 

misbah mirza
by misbah mirza , T.S.E , IFFCO

d: Operational Profit

Naveed Nawaz
by Naveed Nawaz , Regional Accountant & Auditor , Toni&Guy (North Pakistan)

"D"

Operational Profitability

 

Net profit itself is net of operating expenses hence NP Ratio is a measure of operational profitability.

MUJTABA GHARADE
by MUJTABA GHARADE , Accountant , ANAM AND ASSOCIATES (Chartered Accountants)

Overall profitability

Kunal Ghosh
by Kunal Ghosh , Finance Analyst , 2012 – 2013 - ECLERX SERVICES LTD

Profit

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