PROFITABILITY RATIO:

This ratio measures the overall profitability of company considering all direct as well as indirect
cost. A high ratio represents a positive return in the company and better the company is.

Profitability Ratio = Net Profit/sales*100

Classifications of Profitability Ratio:

1. Gross Profit Ratio

2. Operating Ratio
3. Operating profit Ratio
4. Net profit Ratio
5. Return on investment Ratio
6. Return Capital Employed Ratio
7. Earnings per share Ratio
8. Dividend pay-out Ratio
9. Dividend yield Ratio
10. Price Earnings Ratio
11. Net profit to Net worth Ratio