abhishreshthaa
New member
Significance:
1. The ratio is to ascertain the efficiency of the management as regard to operations.
2. Operating profit ratio when compared over a period of time indicates the changes in the efficiency of the business.
3. It is useful in internal analysis for detecting the areas which are responsible for lower profit or general efficiency.
1. The ratio is to ascertain the efficiency of the management as regard to operations.
2. Operating profit ratio when compared over a period of time indicates the changes in the efficiency of the business.
3. It is useful in internal analysis for detecting the areas which are responsible for lower profit or general efficiency.