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.

4 Things All Employees Should Know About the Company Where They Work

Every employee contributes to a company’s financial health—whether they realize it or not. Zingerman’s 10 rules for engaging employees in finance align with Income|Outcome’s philosophy: business acumen should extend beyond leadership. From understanding financial reports to differentiating profit from cash, this post highlights four key financial concepts every employee should know.

The Difference Between Cash and Profit

What is Gross Margin?

Gross margin is a key financial metric that measures the percentage of revenue left after direct costs. Many companies define it differently, leading to confusion. This post explains what gross margin is, how to calculate it, and why it’s essential for business viability. With clear examples and practical insights, this guide helps employees understand how their actions impact a company’s financial health.

What is an Income Statement?

Learn the basics of an income statement, its components, and why it’s essential for understanding a business's financial health.

5 Ways to Extend Profit Responsibility Down the Management Chain