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The ratios :-

 Profitability
 Liquidity
 Asset
 Solvency

Profitability ratios:-
1. Gross profit ratio =gross profit/turnover*100
Here:
Turnover=sales
Gross profit=net sales-cost of sales
Cost of sales=opening stock +net purchase+ other direct expenses-closing stock

 It tell us how much we earn per rs.1 of turnover our business is earning

Net profit margin:-


Net profit margin= net profit/turnover*100
Net profit margin=EBIT/turnover*100
Net profit=gross profit-direct expenses & losses +other income

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