Profit divided by sales is profit per item.
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Net Profit Margin = Net Profit/ Sales Revenue X 100
A firm may set an annual target of a specific dollar volume of profit, which is called target profit pricing.
Sales Per Day Ratio = (Total sales you have made) divided by (The # of days your shop has been open)
gross profit
ROE= profit margin × total assets turnover × equity multiplier ROE= ( Net income / sales ) × ( sales / total assets ) × ( total assets / common equity ) ROE= 3% × ( 100/50)×2 ROE = 3% × 4 = 12 %