Which ratio computes the amount of net income generated per each $1 of sales?
A)EV multiple
B)Gross margin
C)Return on equity
D)Profit margin
E)PE ratio

Name: Which ratio computes the amount of net income generated per each $1 of sales? A)EV multiple B)Gross margin C)Return on equity D)Profit margin E)PE ratio
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Question

Quizplus · Accepted Answer

Profit margin is the ratio that computes the amount of net income generated per each $1 of sales. It is expressed as a percentage and is calculated by dividing net income by total revenue.

Which Ratio Computes the Amount of Net Income Generated Per