Which ratio uses net income and net sales from the income statement to give the percentage of each dollar of sales remaining after all costs of normal operations are accounted for?
A)Return on investment
B)Inventory turnover
C)Current ratio
D)Profit margin
E)Income statement

Question

Which ratio uses net income and net sales from the income statement to give the percentage of each dollar of sales remaining after all costs of normal operations are accounted for? ​
A)Return on investment
B)Inventory turnover
C)Current ratio
D)Profit margin
E)Income statement

Quizplus · Accepted Answer

The profit margin ratio uses net income and net sales from the income statement to give the percentage of each dollar of sales remaining after all costs of normal operations are accounted for. It measures how much out of every dollar of sales a company actually keeps in earnings.

Which Ratio Uses Net Income and Net Sales from the Income