Return On Sales (ROS)

Return On Sales (ROS)

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Net Income
The Profit left for the owners, after all costs, expenses, interest and taxes have been paid.

Return On Sales (ROS)
Ratio: Net Income as a percentage of Sales

Net Income (or Net Profit) is the Profit left for the owners, after all costs, expenses, interest and taxes have been paid.

Example:
- Sales of 200 less COS (80) less Operating expense (70) less interest expense (20) and income tax (10) leaves Net Income of 20.
- Net Income of 20 divided by Sales of 200 equals Return on Sales of 10%.

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