Which financial ratio indicates how much after-tax profit is generated by each dollar of sales?
A) return on investment
B) return on equity
C) gross profit margin
D) net profit margin
E) inventory to net working capital

Question

Quizplus · Accepted Answer

Net profit margin is the ratio that indicates how much after-tax profit is generated by each dollar of sales. It is calculated by dividing net profit by total sales.

Which Financial Ratio Indicates How Much After-Tax Profit Is Generated