Return on Sales

Output: Press calculate

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Formula: Return on Sales = Operating Profit / Net Sales

Return on Sales (ROS) is a ratio used to evaluate a company's operational efficiency, indicating how much profit is being generated from a company’s sales. It is an important indicator for assessing how well a company is managing its costs relative to its net sales. ROS is especially valuable for comparing companies within the same industry, as it provides insight into how much of the revenue is converted into profit.

Tags: Finance, Efficiency, ROS