Definition
ROS is a financial ratio that measures a company�s profitability based on its sales, calculated by dividing operating profit by net sales.
Related Services
Cost management, pricing strategies, and sales performance analysis help businesses improve their ROS by increasing operating efficiency and profitability.
Problem and Application
A low ROS suggests that a company is not effectively managing its operating costs or pricing strategies, potentially impacting profitability.
Conclusion
ROS is a valuable indicator of profitability, helping businesses understand how effectively they are converting sales into operating profit.
