Advertisements
Advertisements
Question
What is N.P. ratio?
Short Answer
Advertisements
Solution
The Net Profit Ratio (N.P. Ratio) is a financial indicator that calculates the percentage of net profit a firm makes from total revenue. It represents the company’s overall profitability after all expenses, such as operational costs, taxes, and interest, have been deducted from its total sales. The formula for calculating this ratio is:
`"Net Profit Ratio"="Net Profit"/"Net Revenue from Operation"xx100`
shaalaa.com
Is there an error in this question or solution?
