The ratio that can be directly calculated from
the income statement is
O debtors turnover ratio
O current ratio
O debt equity ratio
O net profit margin ratio
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Step-by-step explanation:
O debt equity ratio
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The correct answer is (4) Net profit margin ratio.
The correct sentence is: The ratio that can be directly calculated from the income statement is (4) Net profit margin ratio.
- Here, in the given situation, it has been said to give the ratio that can be taken directly that is calculated directly from the income statement of the organization.
- The income statement is a statement that provides us with the financial report or analysis of the company or organization.
- Net profit is calculated after deducting operating expenses from gross profit.
- The formula of the Net profit margin ratio is Net Profit/sales*100. That is by dividing Net profit by sales and multiplying by 100, we get the Net profit margin.
- Hence, the correct answer is 'Net profit margin ratio'.
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