Net income divided by total revenue is referred to as:
A) The equity multiplier.
B) Earnings per share.
C) The retention ratio.
D) The operating cash ﬂow.
E) The proﬁt margin.

Question

Quizplus · Accepted Answer

Net income divided by total revenue gives us the profit margin, which measures the percentage of each dollar of revenue that turns into profit after accounting for all expenses.

Net Income Divided by Total Revenue Is Referred to As