Profitability Ratio

1) Gross Profit Ratio = Gross Profit * 100
Sales

2) Net Profit Ratio = Net Profit * 100
Sales

3) Operating Profit ratio = Operating profit * 100
Sales

4) Return to shareholders = Net profit after interest and tax
Share holders fund

5) Return on Net Worth = Return on Net worth * 100
Net worth

6) Return on capital employed (or) Return on investment = Return (EBIT)
Capital Employed

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