Profit margin is equal to ________.
A)net income divided by total assets
B)net income divided by total owners' equity
C)net income divided by sales
D)none of these

Question

Quizplus · Accepted Answer

Profit margin is calculated by dividing net income by sales. It represents the percentage of sales that converts into profits after all expenses have been paid. Option A and B calculate return on assets and return on equity, respectively.

Profit Margin Is Equal to ________