Return on Sales

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