The formula for net profit margin is net profit before interest and tax divided by:
A) total assets.
B) total equity.
C) sales.
D) share capital + long-term loans.

Question

Quizplus · Accepted Answer

Net profit margin is calculated by dividing net profit before interest and tax by sales. This ratio helps to determine a company's profitability by measuring how much of each dollar of sales is actually generating profit after accounting for expenses.

The Formula for Net Profit Margin Is Net Profit Before