Accounting · Ratio Analysis
Gamma Services Pvt. Ltd. provides the following data from its Profit & Loss Statement for FY 2024-25 (in Rupees): Sales: 2,00,00,000 | COGS: 1,20,00,000 | Operating Expenses (excl. Interest): 30,00,000 | Interest Expense: 10,00,000 | Tax Rate: 30% What is the firm's Net Profit Margin and Interest Coverage Ratio (ICR)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Net Profit Margin: 24 percent; ICR: 4 times
- 2Net Profit Margin: 14 percent; ICR: 5 times✓
- 3Net Profit Margin: 28 percent; ICR: 5 times
- 4Net Profit Margin: 20 percent; ICR: 4 times
Correct answer
Net Profit Margin: 14 percent; ICR: 5 times
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