Which of the ratios listed helps to indicate pricing strategy or competition intensity?
A) current ratio
B) profit margin
C) quick ratio
D) return on assets.

Question

Quizplus · Accepted Answer

Profit margin is the ratio of net income to revenue, which indicates how much profit a company is generating from its sales. A high profit margin may indicate a pricing strategy of charging higher prices or facing lower competition, while a low profit margin may suggest a more price competitive environment or difficulty in generating profits from sales.

Which of the Ratios Listed Helps to Indicate Pricing Strategy