Question: Operating profit margin ( or return on sales ) shows _ _ _ _ _ _ _ _ _ _ _ _ Group of answer
Operating profit margin or return on sales shows
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the percentage of revenues available to cover operating expenses and yield a profit.
the profitability of current operations without regard to interest charges and income taxes. Earnings before interest and taxes is known as EBIT in financial and business accounting.
aftertax profits per dollar of sales.
a measure of the return on total investment in the enterprise. Interest is added to aftertax profits to form the numerator, since total assets are financed by creditors as well as by stockholders.
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