Match the following-

A-II, B-I, C-IV, D-III

The correct answer is option 2- A-II, B-I, C-IV, D-III.

* Gross profit ratio as a percentage of revenue from operations is computed to have an idea about gross margin. It indicates gross margin on products sold. It also indicates the margin available to cover operating expenses, non-operating expenses, etc.

*Net profit ratio is based on all inclusive concept of profit. It relates revenue from operations to net profit after operational as well as non-operational expenses and incomes. It is a measure of net profit margin in relation to revenue from operations. Besides revealing profitability, it is the main variable in computation of Return on Investment. It reflects the overall efficiency of the business, assumes great significance from the point of view of investors.

* Operating Ratio-It is computed to analyse cost of operation in relation to revenue from operations. It is calculated by the formula- (Cost of Revenue from Operations + Operating Expenses)/ Net Revenue from Operations ×100.

* Return on Capital Employed - It explains the overall utilisation of funds by a business enterprise. Capital employed means the long-term funds employed in the business and includes shareholders’ funds, debentures and long-term loans. It measures return on capital employed in the business. It reveals the efficiency of the business in utilisation of funds entrusted to it by shareholders, debenture-holders and long-term loans. For inter-firm comparison, return on capital employed funds is considered a good measure of profitability.