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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