RETURN ON SALES RATIO
CONDITION
| Year : | 2006 |
| Your ratio : | 0.1 |
| Industry Avg : | 0.0 |
| Total Operating : | $97,955 |
| Total Sales : | $1,001,557 |
GRAPH
RETURN ON SALES RATIO
The return-on-sales ratio represents the proportion of every sales dollar that results in profits. It is an excellent measure of profitability. The higher the number, the stronger the company. Upwards trends are favourable. If your company is experiancing a cash flow crunch, it could be because its mark-up is not enough to cover expenses. Return on sales can help point this out, and allow you to adjust prices for an adequate profit. Also, be sure to look for trends in this figure. If it appears to be dropping over time, it could be a signal that you will soon be experiencing financial problems.
This ratio compares after tax profit to sales.It can help you determine if you are making a sufficient return on your sales effort.
The return-on-sales ratio represents the proportion of every sales dollar that results in after-tax profits. It is measure of profitability. The higher the number, the stronger the company. Upwords trends are favorable.