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

The profit margin is the financial metric that represents the percentage of revenue that remains as profit after all expenses are deducted. It is calculated by dividing net income by total revenue.

Net Income Divided by Total Revenue Is Referred to As