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Answer Posted / h.r. sreepada bhagi
Answer by Mr. Niraj Kuamr is correct.
CTR = Net Sales / Capital Employed. Here Capital can be
referred to networth or total long term funds.
1. Capital Employed = Share Capital + All Reserves = Networth
2. Capital Employed = Networth + Long Term Borrowings.
This ratio shows how many times the average capital employed
or the long term funds (average) turned over in the form of
revenue (Sales/Service Income or Turn Over).
Here the term sales is inclusive & refers to both the Sale
of Products & Sale of Services.
| Is This Answer Correct ? | 32 Yes | 4 No |
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