Sales Profitability

 

 

ROS ratio

NI = Net Income

S = Sales

WHAT IS IT ?

Sales Profitability, known as Return on Sales (ROS) in English, often referred to as the profit margin, expresses what percentage of sales is net income.

 

 

CALCULATION:

Enter Sales

Enter Net Income

EXAMPLE:

In a company, sales are, for example, 1,000,000 Euros and the net income is 400,000 Euros.

Thus:

400,000/1,000,000=0.4 which is 40%