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What is Return On Sales (ROS)?

nihitthakkar
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nihitthakkar

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Return on sales (ROS) is a ratio used to evaluate a company's operational efficiency. This measure provides insight into how much profit is being produced per dollar of sales. An increasing ROS indicates that a company is improving efficiency, while a decreasing ROS could signal impending financial troubles. ROS is closely related to a firm's operating profit margin.

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