Which financial ratio measures a company’s ability to generate profit from its total revenue?

Review the verified answer and explanation for this SPSC – Sindh Public Service Commission past-paper question on CampusFin.

Which financial ratio measures a company’s ability to generate profit from its total revenue? Answer: Gross Profit Margin

Net Profit Margin is a financial ratio that measures how much net income or profit a company generates as a percentage of its total revenue.

Question context

This question is part of 📏 Arithmetic Aptitude within the broader 🧠 Aptitude Mastery subject and appears in the SPSC – Sindh Public Service Commission preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.