Return on Sales

on . Posted in Project Management Engineering

Return on sales, abbreviated as ROS, is how efficiently a company can generate operating profit from its revenue.

 

Return on sales Formula

\(\large{ ROS =  \frac{ EBIT }{ NS }  }\) 
Symbol
\(\large{ ROS }\) = return on sales
\(\large{ EBIT }\) = earnings before interest and taxes (operating profit)
\(\large{ NS }\) = net sales

 

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