NET INCOME TO NET SALES RATIO:
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Net Income |
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119,487 |
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8.9 |
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Net Sales |
1,336,454 |
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The Net Income to Net Sales Ratio indicates how many dollars of profit you earn from each dollar of sales. In the example, for every dollar of sales, the company earns 8.9 cents profit.
Source: Harvey A. Goldstein, CPA , Granville Publications