Profit margin is an example of which type of ratio?
A) solvency ratio
B) profitability ratio
C) liquidity ratio
D) activity ratio

Name: Profit margin is an example of which type of ratio? A) solvency ratio B) profitability ratio C) liquidity ratio D) activity ratio
Brand: Quizplus
Rating: 4.7 (28 reviews)

Question

Quizplus · Accepted Answer

Profit margin is a profitability ratio, which helps to measure how much profit a company makes based on its revenue. It is calculated by dividing net income by revenue.

Profit Margin Is an Example of Which Type of Ratio