After-Tax Return On Sales
A profitability measure that indicates how well a company uses its sales revenue. To calculate after-tax return on sales, divide the company's after-tax net income by its total sales revenue. The resulting figure, multiplied by 100, will be a percentage; the higher the percentage, the more efficiently the company uses its sales revenue.
Profitability ratios like after-tax return on sales and after-tax return on assets are useful for comparing different companies within the same industry. However, because profit-margin standards can vary widely by industry, it would not make sense to compare the after-tax return on sales of an automobile manufacturer to that of a clothing store. In addition, a single profitability ratio only provides a small piece of the overall picture of a company's financial performance; investors should use a number of ratios to develop an accurate analysis.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
return on sales — Fin a company’s operating profit or loss as a percentage of total sales for a given period, typically a year. Abbr. ROS EXAMPLE Return on sales shows how efficiently management uses the sales income, thus reflecting its ability to manage costs… … The ultimate business dictionary
Tax forms in the United States — are used by taxpayers and tax exempt organizations to report financial information to the Internal Revenue Service (IRS). They are used to report income and calculate taxes owed to the government of the United States. TOC Federal tax forms 990… … Wikipedia
Tax avoidance and tax evasion — Tax avoidance is the legal utilization of the tax regime to one s own advantage, in order to reduce the amount of tax that is payable by means that are within the law. By contrast tax evasion is the general term for efforts to not pay taxes by… … Wikipedia
Sales taxes in the United States — are a tax added onto the price of goods or services that are purchased in the United States. A sales tax is a tax on consumption, which is displayed as a percentage of the sale price. Sales taxes are assessed by every state except Alaska,… … Wikipedia
Return on equity — (ROE) measures the rate of return on the ownership interest (shareholders equity) of the common stock owners. It measures a firm s efficiency at generating profits from every unit of shareholders equity (also known as net assets or assets minus… … Wikipedia
return on assets — ( ROA) A percentage calculated by dividing net income after tax by total assets. Annual income is usually used in the numerator; however, the annualized income for a month, quarter, or half year can be used. Period end assets is often used in… … Financial and business terms
Tax protester statutory arguments — Part of the Taxation in the United States series Tax protest in the United States … Wikipedia
Sales Tax Audit — A sales tax audit is the examination of a company’s financial documents by a U.S. state’s tax agency to verify if they have collected the correct amount of sales tax from their customers. Purpose The purpose of a sales tax audit is to examine the … Wikipedia
tax law — Introduction body of rules under which a public authority has a claim on taxpayers, requiring them to transfer to the authority part of their income or property. The power to impose taxes is generally recognized as a right of governments.… … Universalium
Tax noncompliance — Taxation An aspect of fiscal policy … Wikipedia