Net income divided by net sales is equal to the:
A)Return on total assets.
B)Profit margin.
C)Current ratio.
D)Total asset turnover.
E)Days' sales in inventory.

Question

Quizplus · Accepted Answer

Net income divided by net sales is the formula for calculating profit margin, which measures a company's profitability by determining the percentage of revenue that is left after all expenses are deducted.

Net Income Divided by Net Sales Is Equal to The