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CAT 2003 Slot 1 — DILR Question 26

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Passage / Data

Answer the following question based on the information given below.

An industry comprises four firms (A, B, C, and D). Financial details of these firms and of the industry as a whole for a particular year are given below. Profitability of a firm is defined as profit as a percentage of sales.

​​​​​​​

Which firm has the highest profitability?

Answer & solution

Correct answer: D

  • A

    A

  • B

    B

  • C

    C

  • D

Solution

It can be observed that the profit value of D is relatively more and the sales value of D is relatively less.

Profitability of A ≈ 525= 20%

Profitability of B ≈ 425= 16%

Profitability of C ≈ 4.824 = 20%

Profitability of D ≈ 416 = 25%

Hence, option (d).

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CAT 2003 Slot 1 DILR Q26: Which firm has the highest profitability? — Solution | TheCATExam