Return on Sales Calculator

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Return on Sales Formula

Return on Sales is a ratio between the net income and sales of a company.

ROS = $\frac{i}{s}\cdot 100$

Where:-

• i = net income before interest and tax
• s = net sales

Example

For example, Maxotek Inc reports net profits of $500,000, interest expense of $100,000, and taxes of $150,000. The operating income of the company is:-

$500000+100000+150000=750,000$

The net sales reported for the same time period is 1,000,000.

Using the above to calculate ROS:-

• $\frac{i}{s}\cdot 100$
• $\frac{750000}{1000000}\cdot 100$
• $0.75\cdot 100$
• ROS = $75\%$