Connect 2-Semester Access Card for Fundamental Accounting Principles
Connect 2-Semester Access Card for Fundamental Accounting Principles
22nd Edition
ISBN: 9780077632755
Author: John Wild
Publisher: McGraw-Hill Education
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Chapter 17, Problem 14DQ
To determine

Introduction

Profit margin ratio is a ratio which helps in determining the profitability of the company. It is calculated by dividing net income by revenue earned. One more way of calculating the profit margin ratio is by dividing Net profits by Sales for a particular period. The formula used to calculate profit margin ratio is as follows:

  Profit Margin Ratio=Net Income or Net ProfitsNet Revenue or Net Sales*100

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Chapter 17 Solutions

Connect 2-Semester Access Card for Fundamental Accounting Principles

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How To Analyze an Income Statement; Author: Daniel Pronk;https://www.youtube.com/watch?v=uVHGgSXtQmE;License: Standard Youtube License