Which of the following is calculated by dividing net income by net sales?
A) Return on equity.
B) Current ratio.
C) Net profit margin.
D) Total asset turnover.

Question

Quizplus · Accepted Answer

Net profit margin is calculated by dividing net income by net sales, which measures the percentage of each dollar of sales that results in profit for the company. A higher net profit margin indicates that the company is generating more profit from each dollar of sales.

Which of the Following Is Calculated by Dividing Net Income