Return On Revenue - ROR

Return On Revenue - ROR

A measure of a corporation's profitability, calculated as net income divided by revenue.

Notes:

The ROR is useful in comparing the profitability of a company from year to year. Intrinsically, the difference between net income and revenue is expenses, such that an increasing ROR implies less expense for higher net income.

See also: Expense, Net Income, Return on Assets- ROA, Return on Equity, Revenue, Shareholders Equity