Question

For the year 2022-23:

• The Operating Profit Ratio of Noah Ltd. was 65%
• Its Revenue from Operations was ₹ 2,00,000

(a) You are required to give the formula used by the company to calculate the Operating Profit Ratio.

(b) You have been provided with two components for calculating the Operating Profit Ratio. Calculate the remaining component.

Answer 1

(a) Operating Profit Ratio = `("Operating Profit")/("Revenue from Operations") xx 100`

(b) Operating Profit = ₹ 2,00,000 × `65/100`

= ₹ 1,30,000