Question
A company has the following details: • Sales: ₹100 lakh • Cost of Goods Sold: ₹70 lakh • Operating Expenses: ₹10 lakh • Interest: ₹5 lakh • Taxes: ₹5 lakh What is the Operating Profit Margin (%)?
Solution
Operating Profit = ₹100 – ₹70 – ₹10 = ₹20 lakh operating Profit Margin = (₹20 lakh / ₹100 lakh) × 100 = 20%
More Financial Management Questions
- Which of the following best describes the relationship between bond prices and interest rates?
- Which of the following best describes the role of the National Asset Reconstruction Company Ltd (NARCL) in the Indian banking sector?
- Which of these are covered under Regulated Entities (RE): 1. All India Financial Institutions (AIFIs) 2. All Non-Banking Finance Companies (NBFCs), 3. ...
- What is the role of Depository Participants (DPs) in the Indian capital market?
- Which of the following statements about the primary market is correct? 1. It is a market for trading existing securities. 2. It involves the is...
- What is correct for Securitization from the following statements?
- What does first ‘P’ in the security instrument PNCPS, stand for?
- The concept of "Conflict of Interest" in business ethics primarily refers to a situation where:
- A facility to withdraw money from a current bank account without having a credit balance but is limited to the extent of the borrowing limit, which the com...
- A trader purchased certain articles for 155,000. He sold some of articles for 200000. The average percentage of gross margin is 25% on cost. Opening stock ...
Relevant for Exams:
