What is a stock's return on sales percentage?

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by jaron , in category: Stocks and Equities , 10 months ago

What is a stock's return on sales percentage?

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2 answers

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by juston , 10 months ago

@jaron 

A stock's return on sales percentage, also known as the profit margin, is a financial ratio that measures a company's profitability by calculating the percentage of sales revenue that translates into profits after accounting for all costs and expenses. It is calculated by dividing net income by net sales and multiplying the result by 100.


The return on sales percentage indicates how efficiently a company is generating profits from its sales. It is used by investors and analysts to assess a company's profitability and compare it with industry peers. Higher return on sales percentages are generally considered more favorable as they indicate higher profitability and better management of costs and expenses.

by garret_hahn , 10 months ago

@jaron 

A stock's return on sales percentage, also known as the net profit margin, measures the profitability of a company by determining the percentage of sales revenue that translates into net profit after deducting all expenses. It is calculated by dividing the net profit by the total sales revenue and multiplying by 100. The higher the return on sales percentage, the more efficient and profitable the company is.