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.
