can Return on Assets computed from Gross Profit (GP) ?
thanks in advance
Dhanya Sreedhar (CA final, doing Job) (661 Points)
10 July 2013can Return on Assets computed from Gross Profit (GP) ?
thanks in advance
Gaurav
(Own Business)
(151 Points)
Replied 10 July 2013
Yes. It counts under your gross profit earn.
Anandan
(HOD accounts)
(502 Points)
Replied 10 July 2013
@ Dhanya Madam, ROA is normally calculated on Net Profit. In Net profit both direct and indirect expenses are taken in to consideration. If you take GP, the return will look good, but won't be approriate.
Regards
Anandan.s
Dhanya Sreedhar
(CA final, doing Job)
(661 Points)
Replied 10 July 2013
Thanks Mr. Anandan...thanks for commenting
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
