Net profit ratio determines the overall efficiency of the business.

Tax = 40% of 2,00,000 = Rs 80,000
Net profit after tax = Rs 1,20,000
Net sales = Rs 10,00,000 - Rs 50,000
= Rs 9,50,000
$NetProfitRatio=\frac{1,20,000}{9,50,000}\times 100=12.63\%$

Revenue from operations = 90,000/15% = 6,00,000

Net profit = 6,00,000*6% = 36000

ROI= (36,000/1,00,000)*100 = 36%

Return on Investment measures a relationship between Net Profit before Interest & Tax and Capital Employed

Operating ratio + operating profit ratio = 100%
So, operating profit ratio =100%- 88.94% = 11.06%

Let cost = x
Then, revenue from operations = 1.25 x
Profit = 0.25 x
Gross profit ratio = $\frac{0.25x}{1.25x}\times 100=20\%$

Net PBIT = Rs 80,000

Capital Employed = Rs 1,20,000 + Rs 50,000 + Rs 1,00,000 + Rs 1,30,000 = Rs 4,00,000
$ROI=\frac{Rs80,000}{Rs4,00,000}\times 100$ = 20%

The profitability ratios are primarily measures of returns.

The average collection period is useful in evaluating credit and collection policies .

Net Sales = Rs 2,60,000 - Rs 10,000 = Rs 2,50,000
Cost of goods sold = Rs 2,00,000
Gross Profits = Rs 2,50,000 - Rs 2,00,000 = Rs 50,000
$Grossprofitratio=\frac{50,000}{2,50,000}\times 100=20\%$