Which metric indicates the percentage of income derived from dollar sales?

The metric that indicates the percentage of income derived from dollar sales is the Return on Sales. This metric is calculated by dividing net income by total sales revenue, providing a clear indication of how efficiently a company is generating profit from its sales. A higher Return on Sales percentage means that the business is retaining a larger portion of its sales as profit, highlighting its operational effectiveness in managing costs relative to sales revenue.

While Gross Profit Rate measures how efficiently a company produces its goods compared to the sales price, it doesn't represent overall income derived from sales in the same comprehensive way that Return on Sales does. Current Ratio is a liquidity metric that assesses a company's ability to pay short-term obligations, and Net Working Capital refers to the difference between current assets and current liabilities, neither of which directly focuses on income generation from sales. Thus, the Return on Sales uniquely qualifies as the metric that illustrates the percentage of income derived from dollar sales.