Asked by
Johnnie Young
on Dec 17, 2024
Verified
The return on sales ratio divides net income before taxes by net sales.
Return on Sales Ratio
A financial metric that measures the portion of a company's revenue that is converted into profit.
Net Income Before Taxes
The profit a company generates after all expenses have been deducted from revenues but before income taxes are subtracted.
- Learn about the relationship between financial management ratios and the functionality of a company's operations, highlighting asset, debt, and profit management.
Verified Answer
CM
Learning Objectives
- Learn about the relationship between financial management ratios and the functionality of a company's operations, highlighting asset, debt, and profit management.
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