OPERATIONAL EFFICIENCY

1. Gross Profit Ratio = (Gross Profit /Net Sales) x 100

= (7,00,000/18,50,000) x 100
= 37.84%
2. Net Profit Ratio = (Net Profit/Net Sales) x 100
= (5,64,000/18,50,000) x 100
= 23.76%
3. Return on Capital Employed = (Profit before Interest/Capital Employed) x 100
= [(5,64,000+22,500)/15,22,000] x 100
= 35.58%
4. Capital Employed Turnover Ratio = Net Sales/Capital Employed
= 18,50,000/15,22,000
= 1.22 times
5. Fixed assets Turnover Ratio = Net Sales/ Net Fixed Assets
= 18,50,000/4,60,00
= 4.02 times
6. Debt-Equity Ratio = Debt/Equity
= 4,00,000/11,22,000
= 0.357 : 1