MANAGEMENT

Detailed explanation-1: -The net profit ratio signifies remaining profit after all costs of production, administration & financing have been deducted from sales, and income taxes recognized.

Detailed explanation-2: -What is the Net Profit Ratio? The net profit percentage is the ratio of after-tax profits to net sales. It reveals the remaining profit after all costs of production, administration, and financing have been deducted from sales, and income taxes recognized.

Detailed explanation-3: -Operating profit shows a company’s earnings after all expenses are taken out except for the cost of debt, taxes, and certain one-off items. Net income, on the other hand, shows the profit remaining after all costs incurred in the period have been subtracted from revenue generated from sales.

Detailed explanation-4: -Gross profit margin is one of the most widely used profitability or margin ratios. Gross profit is the difference between revenue and the costs of production-called cost of goods sold (COGS).