(1) Gross Profit Ratio = Gross Profit X 100

Net Sales
Gross Profit

Net Sales Cost of Goods Sold

Net Sales

Total Sales Sales Return

Total Sales

Cash Sales + Credit Sales

Cost

of

Goods

Sold

opening

Stock

Expenses

Purchases

Direct

Purchase Return Closing Stock

(2) Net Profit Ratio

= Net Profit X 100

Net Sales

Net

Profit = Gross

Profit

Operating

Operating

Expenses

Non

Incomes Non Operating Expenses

Operating Expenses

(SODA) Selling Expenses + Office Expenses

+ Distribution Expenses + Administrative Expenses

(3) Operating Profit Ratio

Operating Profit X 100

Net Sales

Operating Profit

Gross Profit Operating Expenses

OR
Operating Profit

Net Profit + Non-operating Expenses Non

Operating Income

(4) Operating Ratio

Operating Cost X 100

Net Sales

Operating Cost

Cost of Goods Sold + Operating Expenses

(6) Return on Investment (ROI) =Profit before Interest, Tax & Dividend X 100
Capital Employed
Where, Profit before interest, Tax & Dividend = Profit after Tax + Interest + Tax
= Profit after Interest + Interest
Capital Employed

Share Capital (Equity + Preference)

+ Reserves + Surplus/Profit & Loss A/c (Cr.)/Accumulated

Profits