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RATIOS TO BE CALCULATED FOR ASSIGNMENT – POINT 4(a)

1. Operating profit Ratio= Operating profit / Sales X 100 (where operating profit = Sales – Cost of goods
sold – expenses)

2. Return on Assets=Net profit after taxes / Average total assets

3. Return on equity share capital employed = Net profit after tax - Preference dividend (if any) x 100
Net worth
Equity shareholders fund

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