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Definition of 'Return On Sales - ROS'
A ratio widely used to evaluate a company's operational efficiency. ROS is also known as a firm's "operating profit margin". It is calculated using this formula:
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Investopedia explains 'Return On Sales - ROS'
This measure is helpful to management, providing insight into how much profit is being produced per dollar of sales. As with many ratios, it is best to compare a company's ROS over time to look for trends, and compare it to other companies in the industry. An increasing ROS indicates the company is growing more efficient, while a decreasing ROS could signal looming financial troubles.
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Search results for 'Return On Sales (ROS)'
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http://www.investopedia.com/exam-guide/cfa-level-1/financial-ratios/business-risk-ratios.asp
... 11.22 Operating Leverage and its Effects on a Project's Expected Rate of Return;
11.23 Financial Leverage; 11.24 Sales and Leverage; 11.25 Effects of Debt on the ...
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