Ros - return on sales-profit margin , Finance Basics

ROS - Return on Sales (Profit Margin)

1772_ROS – Return on Sales.png

The Average of the industry ROS was 5.18% for 2004, 4.41% for 2005, and 7.20% for 2006. The chart showed that ROS has been declined from 2004 to 2005, and went up from 2005 to 2006. The major company to bring down the ROS for the industry in 2005 was Lenovo. After it acquired IBM PC division, its sales went up a lot, but it did not working well on its costs. ROS dropped a lot from 4.97% to 0.17% from 2004 to 2005 after the acquisition of IBM PC division. The main reason for fast declining ROS should be suffering from interest expense after the large amount of debt raised for acquire the IBM PC division. Also, The ROS for Lenovo has been lower than industry average for every year leads us to think about the costs as major issue to deal for Lenovo. ((See exhibit ratios)

Posted Date: 4/1/2013 2:31:30 AM | Location : United States







Related Discussions:- Ros - return on sales-profit margin , Assignment Help, Ask Question on Ros - return on sales-profit margin , Get Answer, Expert's Help, Ros - return on sales-profit margin Discussions

Write discussion on Ros - return on sales-profit margin
Your posts are moderated
Related Questions

Earning method - Bases of Valuation The business is valued according to the net stream of income it is expected to create over its lifetime. Determination of maintaina

Illustrate the Advantages of Underwriting Underwriting presumes great significance as it offers the below benefits to the issuing company: (i) Issuing company is relied f

Debentures of Middle Asia Reasons behind Unpopularity of Debentures of middle Asia's Financial Market as: i)Their par price is an extremely high value and as such they are

advances from foreigners

Suggestion Regarding Credit Limit. Should It Be Approved Or Not, W, Finance

Significance of Cost of Finance The cost of capital is Significance since of its application in the following areas as: i) Long-term investment decisions - In capital b

Functions of Capital Markets Functions of Capital Markets are as: 1. Providing long term funds that are essential for investment decisions. 2. Provide advices to investo

A manufacturing organisation has three production cost centres, the cutting department, the processing department and the finishing department, and two service cost centres, the st