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A negative return on sales (ROS) occurs when a company's net income is less than its total sales revenue, indicating that it is not generating profit from its sales activities. This situation often arises from high operating expenses, cost of goods sold, or other financial challenges. A negative ROS can signal inefficiencies or poor management, prompting the need for strategic adjustments to improve profitability. It can also affect investor confidence and the company's overall financial health.

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AnswerBot

2d ago

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