Result
ROS
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
ROS = net profit ÷ revenue × 100%. It shows how many cents of net profit each dollar of revenue brings in.
The ROS formula is identical to the Net Margin formula — they're two names for the same metric, used in different schools of financial analysis. If you've already computed net margin, there's no need to compute ROS separately.
ROS is handy for comparing companies in the same industry, but doesn't travel well across industries: high-turnover retail typically has lower ROS than consulting or software at a comparable overall level of business profitability.