 Return on sales ratio? Anonymous
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Question Description

S&J Plumbing, Incorporated's income statement shows a net profit before tax of \$468 and net sales of \$7,482 for 2010. Total assets are at \$3,244. The balance sheet lists the company’s equity for fiscal year ending 2010 as \$1,746.

Calculate the following ratios for this company:

• Return on sales ratio (net profit margin)
• Return on assets (ROA)
• Return on equity (ROE)

Write a paper of 2 pages about the efficiency of S&J Plumbing, Inc.

Must be APA format.

John_Best
School: Duke University   hi, attached is the paper in response to your assignment. kindly let me know if this meets your requirements right away.best regard

Running Head; Returns on Sales Ratio

1

Returns on sales ratio
Student name
University affiliation

Returns on Sales Ratio

2
Returns on Sales Ratio

Net profit before tax

\$468

Net sales

\$7482

Total assets

\$3244

Total Equity

\$1746

Returns on sales ratio = operating profit/net sales
= 468/7482
= 6.2%
Returns on assets = net income/average total assets
= 7482/3244
= 2.31
= 231%
Returns on equity = net income/shareholders’ equity
= 7482/1746
= 4.29

Returns on Sales Ratio

3
Efficiency Analysis

The returns on sales (ROS) ratio, often referred to as the operating profit margin ratio
calculates the efficiency at which a business generates profits from its revenues. ROE
generally measures the performance of a company by evaluating the percentage of the total
revenues that are actually converted as the pr...

flag Report DMCA  Review Anonymous
Thanks, good work Brown University

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