Asked by
Olivia Kocko
on Nov 13, 2024Verified
Net income does not appear in the numerator of the
A) profit margin.
B) return on assets.
C) return on common stockholders' equity.
D) payout ratio.
Net Income
The company's net income, calculated by deducting all costs, taxes, and losses from its total revenue.
Profit Margin
A financial metric showing the percentage of revenue that exceeds the costs of goods sold, indicating the profitability of a company.
Payout Ratio
The proportion of earnings paid out to shareholders as dividends, typically expressed as a percentage of the company's total earnings.
- Comprehend the application of profitability metrics (profit margin, return on assets) in evaluating the overall performance of a company.
Verified Answer
MM
Learning Objectives
- Comprehend the application of profitability metrics (profit margin, return on assets) in evaluating the overall performance of a company.