Asked by Dominique Harris on Jun 01, 2024
Verified
With reference to profitability, Net margin = ___.
A) Net Income ÷ Owner's Equity
B) Net Income ÷ Sales
C) Net Income ÷ Total Assets
D) Net Income ÷ Inventories
E) Net Income ÷ Debts
Profitability
The ability of a business to generate income in excess of its expenses, resulting in profit.
Net Margin
A financial metric that represents the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted.
Net Income
The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.
- Achieve proficiency in understanding and performing calculations of financial ratios for liquidity, profitability, and efficiency assessment.
Verified Answer
Learning Objectives
- Achieve proficiency in understanding and performing calculations of financial ratios for liquidity, profitability, and efficiency assessment.
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