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After tax real rate of return |
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After tax real rate of returnThe after-tax rate of return minus the inflation rate.After tax real rate of return Similar MatchesAverage accounting returnAverage accounting returnThe average project earnings after taxes and depreciation divided by the average book value of the investment during its life. Total returnTotal returnIn performance measurement, the actual rate of return realized over some evaluation period. In fixed income analysis, the potential return that considers all three sources of return (coupon interest, interest on coupon interest, and any capital gain/loss) over some investment horizon. Return on equity (ROE)Return on equity (ROE)Indicator of profitability. Determined by dividing net income for the past 12 months by common stockholder equity (adjusted for stock splits). Result is shown as a percentage. Investors use ROE as a measure of how a company is using its money. ROE may be decomposed into return on assets (ROA) multiplied by financial leverage (total assets/total equity). Return on equityReturn on equityThe adjusted profit of a company divided by its equity. For instance, if the adjusted profit of a company is £1m and Equity is £10m, the Return on Equity is 10%.Adjusted profit is the profit of the company adjusted to exclude the impact of non-recurring exceptional gains, losses, income and charges. The figure can be found in the company's Profit and Loss Account. Equity is the total of ordinary share capital plus reserves, and both figures appear in the company's Balance Sheet. In calculating Return on Equity, you can use the Equity at the end of the year or the average between the opening and closing equity. Rate of returnRate of returnCalculated as the (value now minus value at time of purchase) divided by value at time of purchase. For equities, we often include dividends with the value now. See also: Return, annual rate of return. Further SuggestionsRequired Rate of Return (RRR)Money rate of return Return on total assets Return Interim rate of return Rate Of Return Return to maturity expectations Total return for calendar year Arithmetic average (mean) rate of return Inheritance tax return Subperiod return Holding period return Market return real return Return Mean return Specific Return T period holding period return Separate tax returns Annual rate of return Fair rate of return Safety net return Pretax rate of return Return on investment (ROI) Economic rate of return |
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