Classification of Profit and Loss Account Ratios | Accounting

In this article we will discuss about the classification of profit and loss account ratios in accounting. They are:- 1. Gross Profit Ratio 2. Operating Ratios 3. Expenses Ratio 4. Net Profit Ratio.  1. Gross Profit Ratio: The Gross Profit Ratio is also known as Gross Margin Ratio, Trading Margin Ratio etc. It is expressed as a "Per Cent Ratio." [...]