The ________ ratio shows the portion of each sales dollar remaining after deducting all expenses.
A)net profit on sales
B)net profit to equity
C)net sales to total assets
D)net sales to working capital

Question

Quizplus · Accepted Answer

The net profit on sales ratio (also known as profit margin or net profit margin) calculates the percentage of sales revenue that is left after subtracting all expenses, including COGS, operating expenses, and taxes. It is a measure of a company's profitability and efficiency in managing its expenses.

The ________ Ratio Shows the Portion of Each Sales Dollar