What Is Return on Invested Capital (ROIC)? Return on invested capital (ROIC) is a calculation used to assess a company’s efficiency in allocating capital to profitable investments. The ROIC formula involves dividing net operating profit after tax (NOPAT) by invested capital. ROIC gives a sense of how well a company is using its capital to
What Is Return on Research Capital? Return on research capital (RORC) is a calculation used to assess the revenue a company brings in as a result of expenditures made on research and development (R&D) activities. Return on research capital is a component of productivity and growth since research and development is one of the ways
What Is Return on Revenue? Return on revenue (ROR) is a measure of company profitability based on the amount of revenue generated. Return on revenue compares the amount of net income generated for each dollar of revenue. Return on revenue is one of the most important financial metrics in gauging the profitability of a company.
What Is Reuters? Reuters is a global information and news provider headquartered in London, England, that serves professionals in the financial, media, and corporate markets. Reuters was a standalone global news and financial information company until it was bought by Thomson Financial Corporation in 2008. The parent company, now known as Thomson Reuters Corporation, is headquartered in
What Is a Revaluation? A revaluation is a calculated upward adjustment to a country’s official exchange rate relative to a chosen baseline. The baseline can include wage rates, the price of gold, or a foreign currency. Revaluation is the opposite of devaluation, which is a downward adjustment of a country’s official exchange rate. Key Takeaways A
What Are Revaluation Rates? The term “revaluation rates” refers to rates that are commonly used to determine the performance of currencies. Traders use these market rates to assess whether a currency realizes a profit or loss at any point in time. Key Takeaways The revaluation rate is considered the closing rate for the previous trading
What Is Revaluation Reserve? Revaluation reserve is an accounting term used when a company creates a line item on its balance sheet for the purpose of maintaining a reserve account tied to certain assets. This line item can be used when a revaluation assessment finds that the carrying value of the asset has changed. Revaluation
What Is Revdex? Revdex, a colloquial moniker that is a contraction of “25 revenue bond index”, approximates the yield that an investor will receive if they buy revenue bonds maturing in 30 years. Key Takeaways Revdex, a colloquial moniker that is a contraction of “25 revenue bond index”, approximates the yield that an investor will
What is Revealed Preference? Revealed preference, a theory offered by American economist Paul Anthony Samuelson in 1938, states that consumer behavior, if their income and the item’s price are held constant, is the best indicator of their preferences. Key Takeaways Revealed preference, a theory offered by American economist Paul Anthony Samuelson in 1938, states that
What Is Revenue? Revenue is the money generated from normal business operations, calculated as the average sales price times the number of units sold. It is the top line (or gross income) figure from which costs are subtracted to determine net income. Revenue is also known as sales on the income statement. Key Takeaways Revenue
