The ratio of operating income to sales, which is also a factor in the DuPont formula for determining the return on investment (ROI) , is called

A) profit margin
B) indirect expenses
C) investment turnover
D) cost

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, showing the profitability of a company or product.

DuPont Formula

A financial analysis method that breaks down return on equity into three components: profit margin, asset turnover, and financial leverage, to help understand a company's financial performance.

Operating Income

Earnings generated from a company's core business operations, excluding deductions of interest and taxes.