Which of the following ratios is equal to margin?
A) Operating Income / Sales
B) After-tax Operating Income / Total Capital Employed
C) Operating Income / Average Operating Assets
D) Residual Income / Sales
E) Total Capital Employed / Operating Income

Question

Quizplus · Accepted Answer

Margin is typically calculated as Operating Income divided by Sales, which measures how much out of every dollar of sales a company actually keeps in earnings.

Which of the Following Ratios Is Equal to Margin