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.