CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

An analyst has extracted the following information from the financial statements of Myco:

What is the net profit margin for Myco?
A. 6.09%
B. 9.36%
C. 14.40%
Explanation: Net profit margin = Net income / Sales = [(1 - Tax rate) x Pre-tax income] / Sales = [0.65 x 1,298] / 13,865 = 0.0609, or 6.09%

User Contributed Comments 2

User Comment
Shelton GP.mg=GP/Sales
OP.mg=EBIT/Sales
NP.mg=EAT/Sales
no info on Int. => profit margin = NP.mg = EAT/Sales
MFTIOA Yes - Profit Margin or Net Profit Margin = NI/Rev
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