Return on sales also profit-turnover ratio, operating profit margin, percentage return on sales
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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