The profit margin is the ratio of
A) income from operations to sales
B) income from operations to invested assets
C) assets to liabilities
D) sales to invested assets

Question

Quizplus · Accepted Answer

The profit margin is the ratio of income from operations (or net income) to sales, which shows the percentage of each dollar of sales that results in profit. Option B is referring to the return on investment (ROI), option C is referring to the leverage ratio, and option D is referring to the asset turnover ratio.

The Profit Margin Is the Ratio of