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Profitability Ratios - Operating Profit Ratio

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Operating Profit Ratio : ``

Net operating profit = Net Profit after Tax+ Non-Operating Expenses – Non Operating Incomes

Or

Gross Profit – Operating Expenses + Operating Incomes

Non Operating Expenses = Finance Cost (Interest on Borrowings) + Loss on sale of Non Current Assets

Non Operating Incomes = Interest and Dividend Received on Investment + Profit on sale of Non Current Assets

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