Operating Profit and Income
(CAT 2003(R))
The profitability of a company is defined as the ratio of its operating profit to its operating income, typically expressed in percentage. The following two charts show the operating income as well as the profitability of six companies in the financial years (F.Ys.) 2001-02 and 2002-03.
The operating profits of four of these companies are plotted against their respective operating income
figures for the F.Y. 2002-03, in the third chart given below.
1. Which of the following statements is NOT true?
a. The company with the third lowest profitability in F.Y. 2001-02 has the lowest operating income in F.Y. 2002-03.
b. The company with the highest operating income in the two financial years combined has the lowest operating profit in F.Y. 2002-03.
c. Companies with a higher operating income in F.Y. 2001-02 than in F.Y. 2002-03 have higher profitability in F.Y 2002-03 than in F.Y. 2001-02.
d. Companies with profitability between 10% and 20% in F.Y. 2001-02 also have operating incomes between 150 crore and 200 crore in F.Y. 2002-03.
2. Which company recorded the highest operating profit in F.Y. 2002-03?
a. A
b. C
c. E
d. F
3. What is the approximate average operating profit, in F.Y 2001-02, of the two companies excluded from the third chart?
a. –7.5 crore
b. 3.5 crore
c. 25 crore
d. Cannot be determined
4. The average operating profit in F.Y. 2002-03 of companies with profitability exceeding 10% in F.Y. 2002-03, is approximately
a. 17.5 crore
b. 25 crore
c. 27.5 crore
d. 32.5 crore
For answers click here.
The profitability of a company is defined as the ratio of its operating profit to its operating income, typically expressed in percentage. The following two charts show the operating income as well as the profitability of six companies in the financial years (F.Ys.) 2001-02 and 2002-03.
The operating profits of four of these companies are plotted against their respective operating income
figures for the F.Y. 2002-03, in the third chart given below.
1. Which of the following statements is NOT true?
a. The company with the third lowest profitability in F.Y. 2001-02 has the lowest operating income in F.Y. 2002-03.
b. The company with the highest operating income in the two financial years combined has the lowest operating profit in F.Y. 2002-03.
c. Companies with a higher operating income in F.Y. 2001-02 than in F.Y. 2002-03 have higher profitability in F.Y 2002-03 than in F.Y. 2001-02.
d. Companies with profitability between 10% and 20% in F.Y. 2001-02 also have operating incomes between 150 crore and 200 crore in F.Y. 2002-03.
2. Which company recorded the highest operating profit in F.Y. 2002-03?
a. A
b. C
c. E
d. F
3. What is the approximate average operating profit, in F.Y 2001-02, of the two companies excluded from the third chart?
a. –7.5 crore
b. 3.5 crore
c. 25 crore
d. Cannot be determined
4. The average operating profit in F.Y. 2002-03 of companies with profitability exceeding 10% in F.Y. 2002-03, is approximately
a. 17.5 crore
b. 25 crore
c. 27.5 crore
d. 32.5 crore
For answers click here.
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