39 Higher the Ratio good for the business 39 This statement holds true incase of the i Gross Profit...........

'Higher the Ratio, good for the business'. This statement holds true incase of the

(i) Gross Profit Ratio

(ii) Net Profit Ratio

(iii) Operating Ratio

(iv) Operating Profit Ratio

(v) Working Capital Turnover Ratio

(i), (ii) and (iii)

(i), (ii), (iv) and (v)

(i), (ii), (iii) and (iv)

(ii), (iii), (iv) and (v)

- A higher Gross Profit Ratio indicates better profitability from core business operations.

- A higher Net Profit Ratio suggests strong overall profitability.

- A higher Operating Profit Ratio signifies good operational efficiency.

- A higher Working Capital Turnover Ratio implies efficient use of working capital.

- However, a higher Operating Ratio is not favorable, as it indicates higher operating expenses relative to net sales.

Option:2, (i), (ii), (iv) and (v) is correct.

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