Return On Debt

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Definition: Return On Debt

Return On Debt
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What is the dictionary definition of Return On Debt?

Dictionary Definition

  1. A measure of a company’s performance or net income as related to the amount of debt it has issued.
  2. The amount of profit generated for each dollar that a company holds in debt.
  3. A necessary factor when using the adjusted present value (APV) discounted cash flow method for valuing levered assets. The APV method is often used in a leveraged buyout as a way of valuing a firm that has a changing capital structure.

Full Definition of Return On Debt

  1. A yield obtained on debt issued by a company. ROD can either be positive or negative. A positive ROD is beneficial to a company as it indicates that income is being generated from the debts issued by the company, whereas a negative ROD is the opposite.
  2. Revenue received after operating expenses for each dollar of debt undertaken. Used by companies to measure whether the use of debt to fund themselves is in their best interest.

Synonyms For Return On Debt

ROD

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/return-on-debt/
Modern Language Association (MLA):
Return On Debt. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
May 18, 2024 https://payrollheaven.com/define/return-on-debt/.
Chicago Manual of Style (CMS):
Return On Debt. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/return-on-debt/ (accessed: May 18, 2024).
American Psychological Association (APA):
Return On Debt. PayrollHeaven.com. Retrieved May 18, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/return-on-debt/

Definition Sources

Definitions for Return On Debt are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.