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Question
Consider the following data and answer the question that follows:
| Particulars | ₹ |
| Revenue From Operations | 12,00,000 |
| Cost of Revenue from Operations | 9,00,000 |
| Operating Expenses | 15,000 |
| Inventory | 20,000 |
| Other Current Assets | 2,00,000 |
| Current Liabilities | 75,000 |
| aid up Share Capital | 4,00,000 |
| Statement of Profit and Loss (Dr.) | 47,500 |
| Total Debt | 2,50,000 |
What is the Operating ratio?
Options
75.62%
75%
76.25%
76%
MCQ
Solution
76.25%
Explanation:
Operating Ratio = `("Cost of Revenue from Operations" + "Operating Expenses")/"Revenue from Operations" xx 100`
= `(₹ 9,00,000 + ₹ 15,000)/(₹ 12,00,000) xx 100`
= 76.25%
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Types of Ratios
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