The net profit on sales ratio (also called the profit margin on sales)measures the firm's profit per dollar of sales.

Name: The net profit on sales ratio (also called the profit margin on sales)measures the firm's profit per dollar of sales.
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The net profit on sales ratio is calculated by dividing net profit by sales revenue, and it represents the percentage of sales revenue that is turned into profit. Therefore, the ratio measures the firm's profit per dollar of sales.

The Net Profit on Sales Ratio (Also Called the Profit