Net income divided by Net sales is the calculation for which of the following ratios?
A)Return on equity ratio.
B)Net profit margin ratio.
C)Current ratio.
D)Asset turnover ratio.

Question

Quizplus · Accepted Answer

The calculation of net income divided by net sales gives us the net profit margin ratio, which measures the percentage of each dollar of revenue that results in profit after all expenses are paid.

Net Income Divided by Net Sales Is the Calculation for Which