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Brandon Carroll
on Nov 17, 2024

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The profit margin is the

A) ratio of operating income to sales
B) ratio of operating income to invested assets
C) ratio of assets to liabilities
D) ratio of sales to invested assets

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, showcasing the profitability of a company or product.

Operating Income

The profit realized from a business's core operating activities, excluding deductions of interest and taxes.

Invested Assets

Assets that are purchased or acquired for the purpose of generating income or appreciating in value.

  • Absorb the understanding and numerical evaluation of return on investment (ROI) along with its subdivisions.
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Aleyaha MuntazaliNov 24, 2024
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