Question : ___________measures the relationship between Operating Profit and Revenue from Operations, i.e., Net Sales.

Option 1: Operating profit ratio

Option 2: Operating ratio

Option 3: Net profit ratio

Option 4: Gross profit ratio


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Operating profit ratio


Solution : Answer = Operating profit ratio

The operating profit ratio measures the efficiency of a company's operations by assessing the relationship between operating profit and revenue from operations (net sales). It indicates the percentage of revenue retained as operating profit after deducting operating expenses.
Hence, the correct option is 1.

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