Question

If operating ratio is 75 then what will be the percentage of operating profit ratio

Answer 1

Explanation:

The sum of Operating Ratio and operating Profit Ratio is equal to 100.

Operating Profit Ratio =100-75=25

Answer 2

The answer is 25:

Explanation:

• The total of the Operating Ratio and the Operating Profit Ratio is 100.

       =100-75=25 (Operating Profit Ratio)

• The operating ratio is a metric that measures managerial efficiency by establishing a link between total operating expenses and net revenues.
• The operating ratio is used to measure the management's efficiency in terms of generating a given level of sales or revenue. It also aids in determining how the company's management contributes to cost reduction.
• Operating profit Ratio = Operating Profit / Net Sales × 100
• Operating profit = Net sales – (Cost of goods sold + Administrative and office expenses + Selling and distribution exp.)