Ratios such as the return on sales ratio allow readers to assess whether or not a company will provide them with a particular rate of return on their investment.

Question

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The return on sales ratio is used to determine the profitability of a company by comparing its net income to its sales. This can be helpful for investors who want to determine if the company is generating enough profit to provide them with a desired rate of return on their investment.

Ratios Such as the Return on Sales Ratio Allow Readers