Question

I Net profit is equal to operating Ratio. agree and disagree ​

Answer 1

Answer:

I agree

Explanation:

i bet profit is equal to operating ratio the answer is agree

Answer 2

I disagree that net profit is equal to the operating ratio. These are two distinct financial metrics that measure different aspects of a business's financial performance.

• Net profit is the amount of revenue that is left over after deducting all expenses, including taxes and interest, from the total revenue generated by the business.
• It is an indicator of the overall profitability of the business.

• Operating ratio, on the other hand, measures the efficiency of a company's operations by comparing its operating expenses to its net sales revenue.
• A lower operating ratio indicates that the company is able to control its expenses more effectively, while a higher ratio may indicate inefficiencies in the company's operations.

Therefore, while both net profit and operating ratio are important metrics in evaluating a company's financial performance, they measure different aspects and cannot be equated with each other.

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