Return on Sales: Does Your ROS Make Sense Yet? [2023 updated]
Every company, no matter the size, wants to make stellar profits from its ongoing sales.
After all, profitability is a key indicator of success and sustainability in the business world. To truly gauge your company’s financial performance and assess its efficiency, you can put your money where your mouth is, so to speak, by calculating your return on sales (ROS).
ROS is a crucial metric that provides valuable insights into a company’s ability to generate profits relative to its sales revenue. By understanding and tracking this metric, businesses can make informed decisions that drive profitability now and well into the future.
If you have yet to track ROS for your small business, then you won’t want to miss this comprehensive guide. In this article, we’ll provide you with a complete understanding of ROS, including its definition, significance, and practical applications.
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