The correct answer is: None of these.
The operating ratio is a measure of a company’s profitability. It is calculated by dividing a company’s operating expenses by its revenue. A high operating ratio indicates that a company is spending a lot of money on its operations, while a low operating ratio indicates that a company is efficient in its operations.
The net ratio is a measure of a company’s liquidity. It is calculated by dividing a company’s current assets by its current liabilities. A high net ratio indicates that a company has a lot of cash on hand and is able to meet its short-term obligations, while a low net ratio indicates that a company may have difficulty meeting its short-term obligations.
There is no direct relationship between the operating ratio and the net ratio. A company with a high operating ratio could have a high or low net ratio, and vice versa.
For example, a company with a high operating ratio could be a very profitable company that is reinvesting its profits back into the business. This company would have a high operating ratio but a low net ratio.
On the other hand, a company with a low operating ratio could be a very unprofitable company that is struggling to meet its expenses. This company would have a low operating ratio but a high net ratio.
Therefore, the correct answer to the question “If the operating ratio is 75% then the net ratio will be” is: None of these.