Profit margin is defined as:

A) Revenues divided by net sales.
B) Net sales divided by assets.
C) Net income divided by net sales.
D) Net income divided by assets.
E) Net sales divided by net income.

Profit Margin

Profit Margin is a financial metric that measures the percentage of revenue remaining after all expenses have been deducted from sales.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue, indicating the company’s profitability.

Net Sales

The net income from goods or services sold, after deducting returns, allowances, and discounts.