USA: +1-585-535-1023

UK: +44-208-133-5697

AUS: +61-280-07-5697

Profitability Ratios

 

 

 

 

 

Cost of Goods Sold = Sales – Gross Profit

Operating Expenses = All the expenses debited in the profit & Loss A/c

except financial expenses i.e., Administrative

Expenses, Selling & Distribution Expenses,

Financial Expenses.

Financial expenses may or may not include the operating expenses.

 

 

Return : Net profit

Capital employed : Shareholders fund + long term liabilities

(or)

Fixed assets + Current Assets – Current Liabilities

 

 

Operating Profit = Net Profit + Non-Operating Expenses-Non Operating Income

 

[Return = PAT]