# rate of return

- Calculated as the (value now minus value at time of purchase) divided by value at time of purchase. For equities ( equity), we often include dividends with the value now. See also: return, annual rate of return.
__Bloomberg Financial Dictionary__* * *

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The return on an investment. For a company this would be net profits expressed as a percentage of average capital employed.* * *

**rate of return**__UK____US____noun__[__C__] (__plural__**rates of return**) (*ABBREVIATION***ROR**)**►**__ACCOUNTING__,__FINANCE__the amount of profit that an investment earns calculated as a percentage of the money that was originally invested:**the actual/annual rate of return**»»The Fund's actual rate of return may be greater or less than the 5% return shown in the illustration.

Record crude prices have allowed oil companies to show their strongest

for five years.*rate of return on capital***earn/generate/offer a rate of return**»»The endowments offer an average rate of return of around 10%.

»a

*decent/good/high rate of return*»a

*fixed/net/real rate of return*»a

*low/poor rate of return*a

*guaranteed/projected/expected rate of return*

*Financial and business terms.
2012.*

### Look at other dictionaries:

**rate of return**— n. The percentage of profit made on an investment. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 … Law dictionary**Rate of return**— In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested.… … Wikipedia**rate of return**— Fin an accounting ratio of the income from an investment to the amount of the investment, used to measure financial performance. EXAMPLE There is a basic formula that will serve most needs, at least initially: [(Current value of amount invested – … The ultimate business dictionary**rate of return**— The annual income earned from the investment of resources in a commercial or economic activity, usually expressed as a percentage of the original investment. In a discounted cash flow appraisal, for example, the rate of return may be expressed as … Accounting dictionary**rate of return**— rates of return N COUNT The rate of return on an investment is the amount of profit it makes, often shown as a percentage of the original investment. [BUSINESS] High rates of return can be earned on these investments. ...an 8 per cent average… … English dictionary**rate of return**— noun the amount returned per unit of time expressed as a percentage of the cost • Hypernyms: ↑rate • Hyponyms: ↑return on invested capital, ↑return on investment, ↑ROI * * * : the ratio of net railway operating income to the value of the property … Useful english dictionary**rate of return**— The annual amount of income from an investment, expressed as a percentage of the original investment. This rate is very important in assessing the relative merits of different investments. It is therefore important to note whether a quoted rate… … Big dictionary of business and management**Rate Of Return**— The gain or loss on an investment over a specified period, expressed as a percentage increase over the initial investment cost. Gains on investments are considered to be any income received from the security plus realized capital gains. A rate of … Investment dictionary**rate of return**— grąžos norma statusas T sritis turto vertinimas apibrėžtis Pajamų (nuostolio) dydis ir (arba) faktinis ar numatomas investicijų vertės pokytis, išreikštas procentine investicijų dalimi. atitikmenys: angl. rate of return šaltinis Tarptautiniai… … Lithuanian dictionary (lietuvių žodynas)**rate of return**— rate of re turn n [singular] a company s profit for a year, expressed as a ↑percentage of the money that the company has spent during the year … Dictionary of contemporary English