# Profit margin ratio

posted by
**Amber** on
.

Could someone please help?

I have to compute the profit margin for the following:

Net income Net Sales

A. $4,390 $44,830

B. 97,644 398,954

C. 111,385 257,082

D. 65,234 1,458,999

E. 80,158 435,925

I think (check your text) you use

Net Profit Margin = Net Income / Net Sales

There are other ways to calculate it too, but I think that's the basic formula to use here.

Sometimes revenues is used to mean net sales.