Return on sales, abbreviated as ROS, is how efficiently a company can generate operating profit from its revenue.
Return on Sales Formula |
| \( ROS \;=\; \dfrac{ EBIT }{ NS } \) |
| Symbol |
| \(\large{ ROS }\) = return on sales |
| \(\large{ EBIT }\) = earnings before interest and taxes (operating profit) |
| \(\large{ NS }\) = net sales |
