 Let's see the profitability ratios. Now, we can work on number of profitability ratios, but generally we have like gross profit ratio. Here we compare the gross profit with the net sales, total net sales and find out how much gross profit is of sales. So gross profit ratio is a gross profit to say net rate expressed in percentage, always in percentage. It express the relationship between gross profit and sales. Simple. Formula is gross profit divided by net sales into 100, so you will get a percentage. Significance. Gross profit ratio may indicate to what extent the selling price of goods per unit may be reduced without incurring losses in operation. Definitely your sale price should be greater than the cost of sales so that you can have a gross profit and out of that gross profit you take it out of the operating expense. Acceptability criteria, there is no such criteria, how much it should be, but different businesses have a different gross profit margins. In the textile case, normally 60% is gross profit and out of that 60% remaining expenses they take out. Net profit, that is the final figure of income statement. So you take the net profit and again divide it with sale, not necessarily the sales. There can be many other items which we can use to divide the net profit. But first of all, let's see the net profit ratio and the formula is simple. Net profit divided by net sales into 100. Acceptability criteria, there is no specific criteria again here. The higher it is, better it is. Now return on shareholders' equity, that is the most important one. The shareholders invested their money on a long-term basis. So they want to see how much profit they are earning on their investment because out of that profit they will get some return. Return in the sense they might get some dividend there and then or maybe it adds on to their wealth in terms of increase in their share price. So the formula is simple again. Net profit after interest syntax. As I said the last item in income statement and divide by the share order funds. Share order funds here means the total equity including share capital, including share premium, including retained earnings, including reserves, etc. Total of shareholders' equity should be taken into account. Acceptable criteria is return on share order equity, investment should be greater than the prevailing rate of interest. Normally we compare it with the weighted average cost of capital because whatever money you are putting into a business, it's cost you. And interestingly, we take out an average of the total cost. How much interest we have to pay on this, how much dividend we have to pay on this. Compare it with the amount of profit we are getting. Return on capital employer, that is again a very important one. First of all, make sure that you understand the term capital employed. Capital employed is total funds invested in a business by the owners as well as by the outsiders. So once you know that figure, in fact, there is many authors have given a different view about it, but we should stick to one that adjusted net profit. Here adjusted means the profit generated from the funds we have invested. If there is other income, for example, that should not be included in it. And divide by capital employed. Return on capital employed is considered to be the best measure of profitability in order to assess the overall performance of the business. It indicates how well the management has used investment made by owners and creditors. As I said, not only the owners, but the other suppliers of funds should also be looking after how much return we are getting from the money we have invested. And obviously, the more returns, the better. But again, there is a limitation. It is commonly used as a base of various managerial decisions. Higher the return on capital employed is an indication that the firm is using its funds more efficiently. And that is what is the target basically for each and every business that your return on capital employed should be greater than the weighted average cost of capital. The ratio can be calculated for a number of years so as to find a trend as to whether the profitability of the company is improving or otherwise. Single ratio again is not enough. Always we compare with some other ratios too, like return on equity and here return on capital employed. So we compare that to whether we are going upward or downward. And plus we compare with the last year and the current year. Sometimes we compare industry wise also. For example, we are same industry like say textile. So we look at the textile also what profit they are making, what gross percentage they are getting and what is our company is getting. So this comparison is a must. Simple ratio will not help unless you compare it with some other. Thank you very much.