Question

Revenue from Operations, i.e., Net Sales: ₹ 30,00,000; Net Profit: ₹ 3,00,000. Calculate the Net Profit Ratio.

Answer 1

Calculation of Net Profit Ratio:

\[\text{Net Profit Ratio} = \left( \frac{\text{Net Profit}}{\text{Revenue from Operations}} \right) \times 100\]

$$\text{Net Profit Ratio} = \left( \frac{3,00,000}{30,00,000} \right) \times 100 = 10\%$$

Net Profit Ratio = 10%