Net profit margin is what type of financial ratio?
A) liquidity ratio
B) profitability ratio
C) activity ratio
D) leverage ratio
E) revenue ratio

Question

Quizplus · Accepted Answer

Net profit margin is a profitability ratio that measures the company's ability to generate profit from its sales revenue. It indicates the percentage of each dollar of revenue that results in net income after all expenses are accounted for.

Net Profit Margin Is What Type of Financial Ratio