Business, Legal & Accounting Glossary
Helps determine the profitability of a company, derived by dividing the company’s net income by its revenue. ROR is necessary when comparing the profitability of a company from one year to another, which can indicate how well the company is doing.
Return On Revenue (ROR) is a measure of a corporation’s profitability. Return On Revenue is also known as Net Profit Margin.
Return On Revenue can alert investors to rising expenses when a decrease in return on revenue is observed. An increase in the ROR is an indication that the expenses of the company are being facilitated efficiently.
This ratio should be used in conjunction with other financial ratios to see the full picture of a company financial performance and financial position. The ROR tells only about the financial performance of a company and does not tell anything about the financial position of a company because it does not take into account the assets and liabilities of a company.
Net Profit Margin
ROR
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This glossary post was last updated: 19th November, 2021 | 0 Views.