Question

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Define profitability ratio ?​​

Answer 1

Answer :-

Profitability ratios are a class of financial metrics that are used to assess a business's ability to generate earnings relative to its revenue, operating costs, balance sheet assets, or shareholders' equity over time, using data from a specific point in time.

Formula :-

Net Profit ÷ Sales × 100. Net Profit = Gross Profit + Indirect Income – Indirect Expenses.

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