Meaning of the word "return on sales" in English

What does "return on sales" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

return on sales

US /rɪˈtɜrn ɑn seɪlz/
UK /rɪˈtɜːn ɒn seɪlz/

Phrase

a financial ratio that measures how much profit a company makes from each dollar of sales

Example:
The company's return on sales improved significantly this quarter.
A high return on sales indicates efficient management.