Which financial statement(s)do you need to calculate the profit margin ratio?
A)only the income statement
B)only the balance sheet
C)both the income statement and the balance sheet
D)both the statement of cash flows and the income statement

Question

Quizplus · Accepted Answer

The profit margin ratio is calculated using the net income and revenue figures, which are both found on the income statement. The formula for the profit margin ratio is (Net Income / Revenue) x 100. The balance sheet and statement of cash flows are not required for this calculation.

Which Financial Statement(s)do You Need to Calculate the Profit Margin