Return on Sales (ROS) Calculator





Formula

The formula to calculate the Return on Sales (ROS) is:

\[ \text{ROS} = \left( \frac{\text{Operating Profit}}{\text{Net Sales}} \right) \times 100\% \]

Description

Return on Sales (ROS) is a measure of a company's operational efficiency, indicating the percentage of revenue that is converted into operating profit. It helps assess how well a company manages its costs relative to its sales.

Example Calculation

Let's assume the following:

To calculate the ROS:

\[ \text{ROS} = \left( \frac{30,000}{200,000} \right) \times 100\% = 15\% \]

Therefore, the Return on Sales (ROS) is 15%.