DEFINITION of 'AfterTax Return On Sales'
A profitability measure that indicates how well a company uses its sales revenue. To calculate aftertax return on sales, divide the company's aftertax net income by its total sales revenue. The resulting figure, multiplied by 100, will be a percentage; the higher the percentage, the more efficiently the company uses its sales revenue.
BREAKING DOWN 'AfterTax Return On Sales'
Profitability ratios like aftertax return on sales and aftertax return on assets are useful for comparing different companies within the same industry. However, because profitmargin standards can vary widely by industry, it would not make sense to compare the aftertax return on sales of an automobile manufacturer to that of a clothing store. In addition, a single profitability ratio only provides a small piece of the overall picture of a company's financial performance; investors should use a number of ratios to develop an accurate analysis.

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No. Withdrawals of your aftertax contributions to your IRAs should not be taxed. However, the only way to make sure this ... Read Answer >> 
Do companies measure their cost of debt with before or aftertax returns?
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I have an IRA with aftertax money in it. How do I avoid being taxed again?
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What is the difference between revenue and sales?
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What components are factored in determining net sales?
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What key conditions might explain a company's declining net sales in spite of increasing ...
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