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Example 1

Suppose there are 2 Companies A and B

A earned profit of 10000 on a turnover of 100000

B earned a profit of 15000 on a turnover of 500000

 

Calculate Profit as a percentage of Sales of both Companies

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Which Company is better?

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Which is the ideal Profit/Sales ratio

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 Example 2

Suppose a Company earned profit in 2 years as follows

Particulars

2016

2017

Profit

8000

9000

Sales

100000

150000

 Has the Company’s performance in 2017 improved?

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  1. Accounts and Finance
  2. Step 7 Ratio Analysis
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CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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