Net income divided by sales is the correct formula for calculating:
| a. | a current ratio. | |
| b. | profit margin on sales. | |
| c. | a corporate evaluation. | |
| d. | return on total assets. | |
| e. | a liquidity ratio. |
Answer
1. B. Profit margin on sales
When we consider the formula, we can say that it represents the net profit margin that a company has experienced.
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