Net income divided by sales is the formula for which of these analytical measures?
A)Net margin
B)Return on equity
C)Earnings per share
D)Return on assets

Question

Quizplus · Accepted Answer

The formula for net margin is: net income/sales. The return on equity ratio is: net income/average total stockholders' equity the earning per share ratio is: net earnings available for common stock/average outstanding common share, and the return on assets ratio is net income/average total assets.

Net Income Divided by Sales Is the Formula for Which