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
what is bank draft?How it can be prepared?




Cash Management Techniques The basic strategies that must be employed via the business firm in managing its cash are as: i) To pay account payables as behind as possible wi

Dividend Ratios 1. Dividend per shares (DPS) = Earnings to ordinary shareholders/ Number of ordinary shares Specify cash returns received for all share holders. 2. Di

Shareholders Expectation and Growth Stage Growth Stage Dividend policy is likely to be influenced with firm's growth stage as like a young rapidly growing firm is probabl

Price Earnings Ratio Valuation P/E ratio is traditionally employed for valuation of shares however it is an important ratio in the valuation of business. The P/E ratio is the

Agency Relationship between Government and the Shareholders Shareholders and via extension, the company they own operate within the environment requiring the charter or licens

what are the modern methods of evaluating capital projects? how they different from old methods?