Define: Return On Debt

Business, Legal & Accounting Glossary

Definition: Return On Debt

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.


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
Modern Language Association (MLA):
Return On Debt. Payroll & Accounting Heaven Ltd. April 07, 2020
Chicago Manual of Style (CMS):
Return On Debt. Payroll & Accounting Heaven Ltd. (accessed: April 07, 2020).
American Psychological Association (APA):
Return On Debt. Retrieved April 07, 2020, from website:

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: 25th March, 2020