The ratio of net profit to net sales is the net profit margin. What is another term for it?
A) return on revenue
B) return on earnings
C) return on equity
D) return on sales

Question

Quizplus · Accepted Answer

Net profit margin is often referred to as return on sales, as it represents the percentage of revenue that is earned as profit after all expenses have been paid. While options A, B, and C all refer to financial ratios, they do not accurately describe the net profit margin.

The Ratio of Net Profit to Net Sales Is the Net