Which of the following is calculated by dividing net income by net sales?
A)Gross profit margin.
B)Current ratio.
C)Net profit margin.
D)Asset turnover.

Name: Which of the following is calculated by dividing net income by net sales? A)Gross profit margin. B)Current ratio. C)Net profit margin. D)Asset turnover.
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Question

Quizplus · Accepted Answer

Net profit margin is calculated by dividing net income (profit) by net sales (revenue). This ratio shows the percentage of each dollar of sales that results in profit for the company.

Which of the Following Is Calculated by Dividing Net Income