what is return on sales ros 
return on sales ros is a ratio used to evaluate a company s operational efficiency this measure provides insight into how much profit is being produced per dollar of sales an increasing ros indicates that a company is improving efficiency while a decreasing ros could signal impending financial troubles ros is closely related to a firm s operating profit margin investopedia lara antalformula and calculation of return on sales ros locate net sales and operating profit from a company s income statement and plug the figures into the formula below ros operating profit net sales where ros return on sales operating profit is calculated as earnings before interest or ebit begin aligned text ros frac text operating profit text net sales textbf where text ros text return on sales text operating profit is calculated as earnings text before interest or ebit end aligned ros net salesoperating profit where ros return on salesoperating profit is calculated as earningsbefore interest or ebit 