Financial Terms Glossary

Return On Sales (ROS)


A simple measure of the net profitability of a business compared to the levels of turnover (sales income) generated in that business. This measures, as a percentage, how much of the profit or income from the sales activity is left for the business after the deduction of the running expenses. Eg Sales £100,000 Net Profit (earnings) £10,000 - 10% ROS.


Businesses generate income - (say) at a rate of 25% of the turnover or sales value. This is the gross margin percentage (25%) Further expenses for staff, premises and travelling may take another 15% of the sales value. That leaves a net profit or earnings level at 10% of the original sales value. This is the ROS percentage.

What we do

At Shark Finesse we have created business case software to help you win budget and change the way you talk to customers about business value.
Find out how

We'd love to hear from you!

+44 (0)1256 338635
Grove House, Lutyens Close
Basingstoke, Hampshire
RG24 8AG, UK