Operating Ratio || ratio analysis || Class 12th & B.com скачать в хорошем качестве

Operating Ratio || ratio analysis || Class 12th & B.com

Hello Students, Welcome to वाणिज्य की पाठशाला । Today we will learn about Operating Profit Ratio . Operating Ratio Formula = Operating Expenses / Net Sales * 100. In certain cases, the cost of goods sold is given separately from operating expenses. In such cases, the cost of goods sold is added to operating expenses. In railroading, an operating ratio of 80 or lower is considered desirable. The operating ratio can be used to determine the efficiency of a company's management by comparing operating expenses to net sales. It is calculated by dividing the operating expenses by the net sales. Operating Ratio =(Operating Expenses+Cost of Goods Sold)/ Net Sales. A higher ratio would indicate that expenses are more than the company's ability to generate sufficient revenue and may be considered inefficient. The operating ratio is a useful way to evaluate a company's core operations. ... The lower the ratio, the more efficiently the company is creating profits. It is important to note, however, that some industries have higher or lower operating expense requirements than others. Operating ratio plus operating profit ratio is 100. The two ratios are obviously interrelated. For example, if the operating profit ratio is 20%, it means that the operating ratio is 80%. A rise in the operating ratio indicates a decline in the efficiency. --------------------------------------------------------------------------------------------------------------------------- If you have any question, feel free to ask. If you like the video, please like and share with your friends and family members.. Please post your suggestions in comment box... Please Subscribe To Stay Tuned. --------------------------------------------------------------------------------------------------------------------------- Disclaimer: This video is made for knowledge sharing and educational purposes. Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for "fair use" for purposes such as Educational Purpose, Criticism, Comment, News Reporting, Teaching, Scholarship, and Research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use.