Which of the following ratios is widely used as an indication of management efficiency and measures the percentage of each sales dollar that remains as profit after all expenses have been paid.
A) times interest earned
B) net profit margin
C) return on assets
D) return on equity

Question

Quizplus · Accepted Answer

The net profit margin ratio is used to determine the percentage of each sales dollar remaining as profit after all expenses have been paid, indicating the efficiency of management in controlling expenses and generating profit from sales.

Which of the Following Ratios Is Widely Used as an Indication