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# Rate of return ratios

Ratios that measure the profitability of a firm in relation to various measures of investment in the firm.

Rate of return ratios

# Total return for calendar year

Total return for calendar year

The profit or loss realized by an investment at the end of a specified calendar year, stated as the percentage gained or lost per dollar invested on January 1.

# Multiple rates of return

Multiple rates of return

More than one rate of return from the same project that make the net present value of the project equal to zero. This situation arises when the IRR method is used for a project in which negative cash flows follow positive cash flows. For each sign change in the cash flows, there is a different rate of return.

The basic concept that higher expected returns accompany greater returns, and vice versa.

# Return on investment

Return on investment

The overall profit (or loss) on an investment expressed as a percentage of the total invested. For example: A person invests £5,000 in the shares of a company and some time later has received £100 in dividends with the value of the shares now £5,200. The return on investment is: (£100 + £5,200 - £5,000) /£5,000] x 100 = 6%

# Money rate of return

Money rate of return

Annual money return as a percentage of asset value.

# Further Suggestions

Returns to scale
Unleveraged required return
return on equity
Simple rate of return
Market RRR (required rate of return) Schedule
Specific Return
Subperiod return
Mean return
Real return
Expected return on investment
Real rate of return
Average rate of return (ARR)
Expected return beta relationship
Rate Of Return
Maximum return criterion (MRC)
Rate of return
return on capital employed
Return on total assets
Realized return
Excess return on the market portfolio
Riskless rate of return
Diminishing returns
Law of Diminishing Returns
"Static" Return
Return of capital