Return on Sales Calculator

Feb 24, 2019
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Return On Sales Calculator is used to compute the net profit margin or Return on Sales
ROS RATIO:
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Return on Sales Formula

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

ROS = `i / s * 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:-

  • `i / s * 100`
  • `750000 / 1000000 * 100`
  • `0.75 * 100`
  • ROS = `75%`
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History
Feb 24, 2019
Calculation formula breakdown
Jun 4, 2018
Tool Launched