1. An Overview of Ratio Analysis
... profitability of the concern. It is calculated as: Net Profit Ratio = Net Profit x 100 Net Sales The net profit ratio is designed to focus attention on the net profit margin arising from business before interest and tax is deducted. A high ratio means adequate returns to the owners and enables the firm to withstand intense completion. A low indicates inadequate returns to the ... ...
- Word Count: 5556
- Approx Pages: 22
- Has Bibliography
- Grade Level: High School