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India Kayla
on Nov 12, 2024

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The profit margin is the ratio of

A) income from operations to sales
B) income from operations to invested assets
C) assets to liabilities
D) sales to invested assets

Profit Margin

A financial metric used to assess a company's profitability by comparing net income to sales; calculated as (Net Income / Sales) * 100.

Income From Operations

The earnings generated from a company’s core business activities, excluding any gains or losses from investments and other non-operational sources.

Invested Assets

Assets acquired by a company or individual as a means of generating future income.

  • Calculate and expound on the net income ratio for units or corporate entities.
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LT
lynette tucciNov 17, 2024
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