abhishreshthaa
Abhijeet S
Significance:
1. It is a measure of overall profitability and is useful to the proprietors and investors I in judging the prospects of the return on their investments.
2. Read along with the operating ratio, net profit ratio provides useful inference as to efficiency and the profitability of the business.
3. It indicates to what portion of net sales in available to the proprietors.
4. The ratio is often called as Index Of Marginal Efficiency
1. It is a measure of overall profitability and is useful to the proprietors and investors I in judging the prospects of the return on their investments.
2. Read along with the operating ratio, net profit ratio provides useful inference as to efficiency and the profitability of the business.
3. It indicates to what portion of net sales in available to the proprietors.
4. The ratio is often called as Index Of Marginal Efficiency