In 2018,Target Corp.reported sales of $71.9 billion,cost of goods sold of $51.1 billion,operating profit of $4.3 billion,and net income of $2.9 billion.Target has no preferred stock outstanding.It's net profit margin that year was ________.

Question

Quizplus · Accepted Answer

Net profit margin is calculated as net income divided by revenue, multiplied by 100 to get a percentage. Therefore, Target's net profit margin in 2018 was (2.9/71.9) x 100 = 4%.