If a Company's Ratio of Net Income to Net Sales

question 79

True/False

If a company's ratio of net income to net sales (generally referred to as profit margin on sales)is low, then its return on investment will be low.

---

Definitions:

Shelf Registration

A regulatory process that allows a company to register a new issue of securities without having to sell the entire issue at once.

Securities

Financial instruments representing some type of financial value, such as stocks, bonds, or options.

Knowledgeable Investors

Individuals or entities that possess an understanding and experience in financial and business matters, making them capable of evaluating investment risks and merits.