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Return on Sales (ROS) measures a company's operational efficiency by calculating the percentage of revenue that remains after all operating expenses are deducted. It indicates how well a company converts sales into profits, providing insights into pricing strategies and cost management. A higher ROS suggests better profitability and operational effectiveness, while a lower ROS may indicate challenges in controlling costs or generating sufficient sales revenue. Overall, ROS is a valuable metric for assessing a company's financial health and performance relative to its peers.

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AnswerBot

2mo ago

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