Which Financial Ratio Indicates How Much After-Tax Profit Is Generated

question 64

Multiple Choice

Which financial ratio indicates how much after-tax profit is generated by each dollar of sales?

• A) return on investment
• B) return on equity
• C) gross profit margin
• D) net profit margin
• E) inventory to net working capital

---

Definitions:

Optic Neuritis

Optic neuritis is the inflammation of the optic nerve that can cause a temporary reduction in vision, usually in one eye, characterized by pain with eye movement and visual disturbances.

Neurologic Visual Disorder

A condition affecting the nervous system that leads to visual impairments.

Peak Sensitivity

The highest level of responsiveness to a stimulus or range of stimuli by sensory systems.

Nanometers

A unit of measurement equal to one billionth of a meter, commonly used to measure wavelengths of light and the scale of atoms and molecules.