You dream. You envision. You hope. You believe that your fidget spinner company will return a million bucks in profit next year, four million the year after that, and ten million the year after that. You honestly expect those financial returns.
Three years go by, during which you visually age forty years, only to look back and realize that your trailing three years actual returns were breakeven year one, a loss of $200,000 year two, and a loss of a million in year three, before you finally threw in the towel and declared bankruptcy.
In wars, actual always defeats expected. Sorry.
Related or Semi-related Video
Finance: What is Return on Sales (ROS)?3 Views
Finance allah shmoop what is return on sales or r
o s This is your return This is your return
on sale Any questions Oh i see a lot of
hands raised Ok then return on sales are roos is
an investment metric which basically reflects how profitable a company
is that is return here is profits and sales is
well the stuff you sold so return on sales is
a profitability index It speaks to how profitable and given
industry or company runs take wear hauser the paper and
pulp company that kills trees and makes them into paper
in a good year They have five billion dollars in
sales and profits of two hundred fifty million Really low
profit margin business especially when you consider that so many
years are well not good But the google search biz
well it's a bunch of servers and algorithm and not
much else So in a given year on sales of
twenty billion box it'll have returns of something like fifteen
billion pretax The basic notion is that you will see
the term return on a ton of other terms like
return on capital return on assets return on equity and
almost always the return that they're referring to There is
profits or earnings And from that ratio of return on
whatever in this case return on sales Investors can impute
a profit margin just a fraction which then derives the
valuation and or various other metrics Important toe Understanding a 00:01:33.812 --> [endTime] given security investment that's Why we study it
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