(v6005.00) Return on Sales

Return on Sales (v6005.00) or Net Profit Margin is a profitability ratio that tells you what proportion of Sales (Net) (v1030) finds its way into Net Income (v1750).

Net Income (v1750.00) /                                            
Sales (Net) (v1030.00)

Accrual-based measures such as Net Income (v1750) and ROS (v6005.00) have limitations: they do not incorporate risk, the time value of money, or investment requirements, and they can be greatly affected by alternative accounting conventions.