Return on Sales Calculator

Formula

The formula to calculate the Return on Sales (ROS) is:

\[ ROS = \frac{OP}{NS} \times 100 \]

Where:

$ ROS $ is the return on sales percent.
$ OP $ is the operating profit.
$ NS $ is the net sales.

What is Return on Sales?

A return on sales, or ROS for short, is a measure of the growth in value of the return on investment in sales that a business generates. It indicates how efficiently a company is generating profit from its revenue.

Example Calculation

Consider an example where:

Operating Profit (OP): $50,000
Net Sales (NS): $200,000

Using the formula to calculate the Return on Sales:

\[ ROS = \frac{50,000}{200,000} \times 100 = 25\% \]

This means that the return on sales for this example is 25%.