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Return on Sales

 

Return on Sales Formula

\( ROS \;=\;  \dfrac{ EBIT }{ NS }  \) 
Symbol
\( ROS \) = Return on Sales
\( EBIT \) = Earnings Before Interest and Taxes (Operating Profit)
\( NS \) = Net Sales

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

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