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How to calculate ROS in Excel

Return on Sales (ROS) is a financial ratio that measures a company’s efficiency in generating profits from its revenue. It is calculated by dividing the operating profit (or income) by the net sales. A higher ROS indicates greater profitability and better control over costs.

In this tutorial, I’ll show you how to calculate ROS in Excel with a simple ROS formula. All you need are two inputs: operating profit and net sales. Alternatively, you can use EBIT (earnings before interest and taxes) as a proxy for operating profit and revenue for net sales.

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