Unless explicitly defined otherwise, this is the ratio of profit before taxes to sales within an accounting period. It thus indicates how many GE of profit a company has generated per GE of sales. A company with a high return on sales is CETERIS PARIBUS less susceptible to market fluctuations of any kind. – See assertion strategy, contribution margin, earnings, operating, profit, operating, profit cycle, run rate. – Cf. Deutsche Bundesbank Monthly Report of January 2010, p. 20 f. (return on equity and return on sales; assessment of meaningfulness).
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