PTIN Seal

Buying & Selling a Business

  1. PTINdirectory
  2. Tax Knowledge Database
  3. Buying & Selling a Business
  4. What is the Rate of Return On Sales Ratio ?

What is the Rate of Return On Sales Ratio ?

Operating Income divided by Net Sales = ROROS Ratio. This ratio illustrates how much net profit was derived from every dollar of sales. It helps indicate if the business is generating enough sales to cover fixed costs and leave an acceptable residual profit.

Need Professional Help?

If you need help with "Buying & Selling a Business" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.