Return on sales

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Return on sales ratio (also: return on sales, ROS) - profitability ratio indicating how much net profit remains in the company from sales.

Profitability ratio is the ratio of net profit (see profit and loss account) to net sales.

Tells you how much of your sales is a profit margin after deducting all costs and paying taxes. A higher level of this indicator indicates a better financial condition of the company. Deterioration of the indicator means that the company must realize larger sales volumes to reach a certain amount of profit. Bibliography

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