Is the Return on Sales ratio the same as the Profit margin ratio?

Posted: 03-09-2010 | Author: admin | Category: Corporations


? in financial accounting

Category: Corporations by admin

One Response to “Is the Return on Sales ratio the same as the Profit margin ratio?”

  1. Sandy, on September 4th, 2010 at 11:39 am Said:

    They are similar but not identical. Return on Sales ratio is widely used to evaluate a company’s operational efficiency. ROS is also known as a firm’s “operating profit margin”. It is calculated using this formula:
    Net income (before interest and tax)/Sales

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