ROS
ROS is a short for Return on Sales, a measure of how much profit company can generate per one dollar of sales.
Return on Sales is calculated by dividing EBIT (earnings before interests and taxes) by total sales.
Large ROS implies great efficiency of one company, and small ROS implies financial trouble. When comparing multiple ROS results over time, investor could get clear picture of trends developing within profitability of one company. Also, investor will compare ROSs of companies in the same industry in order to gain more information about the market and profit potential within different companies.
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