Return on sales ratio?

timer Asked: Mar 28th, 2017
account_balance_wallet $10

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.

Tutor Answer

School: Duke University

hi, attached is the paper in response to your assignment. kindly let me know if this meets your requirements right regard

Running Head; Returns on Sales Ratio


Returns on sales ratio
Student name
University affiliation

Returns on Sales Ratio

Returns on Sales Ratio

Net profit before tax


Net sales


Total assets


Total Equity


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

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...

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Thanks, good work

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