With reference to profitability, Net margin = ___.

A) Net Income ÷ Owner's Equity
B) Net Income ÷ Sales
C) Net Income ÷ Total Assets
D) Net Income ÷ Inventories
E) Net Income ÷ Debts

Profitability

The ability of a business to generate income in excess of its expenses, resulting in profit.

Net Margin

A financial metric that represents the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.