Report post

What is the formula for profitability ratio?

What is the net profitability ratio formula? The net profitability ratio formula is: Net profitability ratio = (net profit / net sales) x 100. What is the difference between the net profitability ratio and the gross profit margin? The difference between the net profitability ratio and gross profit margin is that the gross profit margin formula gives you an exact money amount for your revenue.

What is the formula for profit volume ratio?

Formula of Profits Volume Ratio Formula of Profit Volume Ratio. PV Ratio = Contribution / Sales * 100 Considering the last example in which the contribution was Rs. 20 and the Sales price was Rs. 100; so, the (PV) Profit Volume Ratio will be equals to 20/100 * 100% = 20% The beauty of this ratio is that the PV Ratio will always be the same for ...

What is the profitability index (PI)?

The profitability index (PI) is a technique used to measure a proposed project's costs and benefits by dividing the projected capital inflow by the investment.

The World's Leading Crypto Trading Platform

Get my welcome gifts