Accountancy, asked by okelseti73, 9 months ago

what is formula of net profit ratio

Answers

Answered by Anonymous
6

Answer:

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Explanation:

✏️The formula for the net profit ratio is to divide net profit by net sales, and then multiply by 100. The formula is: (Net profit ÷ Net sales) x 100. The measure could be modified for use by a nonprofit entity, if the change in net assets were to be used in the formula instead of net profit.

ADDITIONAL INFORMATION:

✒️Formula to Calculate Net Profit Ratio

Net Profit = Operating Income – (Direct Costs + Indirect Costs)

Net Sales = (Cash Sales + Credit Sales) – Sales Returns.

Net Sales = Sales – Returns.

Net Profit = Operating Income – (Direct Costs + Indirect Costs)

Answered by brainliest35
1

Answer:

The net profitability ratio formula is: Net profitability ratio = (net profit / net sales) x 100.

Explanation:

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