Return on sales can provide how effectively costs are managed and is part of the DuPont method of profitability analysis.

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Return on sales (ROS) is a measure of a company's profitability that shows how effective it is at managing costs. It is calculated by dividing net income by total revenue. The DuPont method of profitability analysis breaks down return on sales into two components: profit margin and asset turnover.

Return on Sales Can Provide How Effectively Costs Are Managed