Difference between revisions of "Return on sales ratio"
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| − | [[Return on sales ratio]] is a profitability ratio that shows the relationship of net income before taxes to net sales and thereby the effectiveness of a company's pricing policy. | + | [[Return on sales ratio]] (or, simply, [[return on sales]]) is a profitability ratio that shows the relationship of net income before taxes to net sales and thereby the effectiveness of a company's pricing policy. |
Revision as of 04:56, 21 December 2018
Return on sales ratio (or, simply, return on sales) is a profitability ratio that shows the relationship of net income before taxes to net sales and thereby the effectiveness of a company's pricing policy.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Return on sales ratio. A profitability ratio that shows the relationship of net income before taxes to net sales and thereby the effectiveness of a company's pricing policy.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
