1. Independent Business Report
... or may be holding poorly selling items. (evaluation of the ratio) This ratio places the business in a position to make an acceptable return on net profit and rate of return on equity. Net Profit (significance of ratio) The net profit ratio indicates the ability of the business to generate profit from sales revenue. (explanation of the ratio) It is a key indicator of the ... of 12.55%. (interpretation of the ratio) The increased cost of goods sold which was discussed previously in relation to the gross profit ratio has had a further impact on the net profit. The expenses which need to be...
- Word Count: 985
- Approx Pages: 4
- Grade Level: Undergraduate