UK Accounting Glossary
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.
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This glossary post was last updated: 22nd March 2020.