Net income divided by sales is the correct formula for calculating:

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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