February 1, 2025
Calculating Return on Sales
Return on Sales (ROS) is a vital financial metric that measures how efficiently a company converts sales into profit. This post explains how to calculate ROS, compares notable 2023 results (Apple, Google, Facebook, Microsoft, and Twitter), and discusses why ROS is just one part of the bigger financial picture. The Triangle of Ratios—linking ROS, Asset Turnover, and Return on Assets—illustrates how financial statements connect for a full business view. Understanding ROS helps employees and decision-makers make better business choices.
