Net Income / Sales ... what does this number represent?

Factual Questions
1

I have a quick question:

If I divide my Net Income by my Total Amount of Sales, what does that number represent? How would you interpret that business-wise?

Thanks in advance.

2

Well, that would give you the ratio of your net income to sales.

3

i would think the average money you make per sale

4

Aka your net profit margin.

5

That gives you your Net Profit Margin.

The percent of sales that eventually “trickle down” to your bottom line.

6

I knew there was a name for that. But I couldn’t remember it, so I decided to be obnoxious.