Income|Outcome® Blog

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.

Understanding the Cash Conversion Cycle

The Cash Conversion Cycle (CCC) is a key financial metric that measures how long it takes a company to turn investments in inventory into cash. This post breaks down the components of the CCC—inventory turnover, accounts receivable, and accounts payable—and explains why optimizing it is crucial for business success.

What is Days Sales Outstanding?

DSO measures how long it takes customers to pay after being invoiced. Learn how to calculate it, why it impacts cash flow, and how reducing it can improve your business.

Income/Outcome Business Contextuary