Data Interpretation: IVP Ltd. Sales and Net Profit

CAT 1999 Slot 1 · DILR · Medium · Data Interpretation

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Passage / data set

The figure presents sales and net profit in Rs. crore of IVP Ltd. for five years from 1994-95 to 1998-99.

YearSales (Rs. cr)Net Profit (Rs. cr)
1994-951002.5
1995-962504.5
1996-973006.0
1997-982908.5
1998-9968012.0

Question 1 of 4

The highest percentage of growth in sales, relative to the previous year, occurred in

  1. A.

    1995-96

  2. B.

    1996-97

  3. C.

    1997-98

  4. D.

    1998-99

Answer

A

Explanation

Growth in 1995-96: (250−100)/100=150%(250-100)/100 = 150\%. Growth in 1998-99: (680−290)/290=134.5%(680-290)/290 = 134.5\%. Highest is in 1995-96.

Question 2 of 4

The highest percentage growth in net profit, relative to the previous year, was achieved in

  1. A.

    1998-99

  2. B.

    1997-98

  3. C.

    1996-97

  4. D.

    1995-96

Answer

D

Explanation

Growth in net profit in 1995-96: (4.5−2.5)/2.5=80%(4.5 - 2.5)/2.5 = 80\%. Other years give lower percentages (33.3%33.3\%, 41.6%41.6\%, 41.2%41.2\%). Thus, highest was in 1995-96.

Question 3 of 4

Defining profitability as the ratio of net profit to sales, IVP Ltd., recorded the highest profitability in

  1. A.

    1998-99

  2. B.

    1997-98

  3. C.

    1994-95

  4. D.

    1996-97

Answer

B

Explanation

Profitability ratios: 1994-95: 2.5/100=0.0252.5/100 = 0.025 1995-96: 4.5/250=0.0184.5/250 = 0.018 1996-97: 6/300=0.0206/300 = 0.020 1997-98: 8.5/290=0.02938.5/290 = 0.0293 1998-99: 12/680=0.017612/680 = 0.0176 Highest is 1997-98.

Question 4 of 4

With profitability as defined in question 137, it can be concluded that

  1. A.

    profitability is non-decreasing during the five years from 1994-95 to 1998-99.

  2. B.

    profitability is non-increasing during the five years from 1994-95 to 1998-99.

  3. C.

    profitability remained constant during the five years from 1994-95 to 1998-99.

  4. D.

    None of the above

Answer

D

Explanation

Profitability fluctuates (0.025→0.018→0.020→0.0293→0.01760.025 \to 0.018 \to 0.020 \to 0.0293 \to 0.0176), so it is neither monotonically increasing nor decreasing nor constant.

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