rate of return

(redirected from Return Rates)
Also found in: Dictionary, Thesaurus, Encyclopedia.
Related to Return Rates: ROI, Average rate of return

Rate of return

Calculated as the (value now minus value at time of purchase) divided by value at time of purchase. For equities, we often include dividends with the value now. See also: Return, annual rate of return.

Rate of Return

In securities, the amount of revenue an investment generates over a given period of time as a percentage of the amount of capital invested. The rate of return shows the amount of time it will take to recover one's investment. For example, if one invests $1,000 and receives $150 in the first year of the investment, the rate of return is 15%, and the investor will recover his/her initial $1,000 in six years and eight months. Different investors have different required rates of return at different levels of risk.

rate of return

Rate of return.

Rate of return is income you collect on an investment expressed as a percentage of the investment's purchase price. With a common stock, the rate of return is dividend yield, or your annual dividend divided by the price you paid for the stock.

However, the term is also used to mean percentage return, which is a stock's total return -- dividend plus change in value -- divided by the investment amount.

With a bond, rate of return is the current yield, or your annual interest income divided by the price you paid for the bond. For example, if you paid $900 for a bond with a par value of $1,000 that pays 6% interest, your rate of return is $60 divided by $900, or 6.67%.

rate of return

the PROFITS earned by a business, measured as a percentage of the ASSETS employed in the business. See RETURN ON CAPITAL EMPLOYED.

rate of return

the PROFITS earned by a business, measured as a percentage of the ASSETS employed in the business. See NORMAL PROFIT, ABOVE-NORMAL PROFIT, RATE OF RETURN REGULATION, RETURN ON CAPITAL EMPLOYED.

rate of return

The ratio between the earnings and the cost of an investment.
References in periodicals archive ?
13) Using an "S" curve implies that at low return values return rates grow rapidly, but as the return value increases beyond some critical point, the growth in return rates slows.
Our intention was not to conduct an inferential experiment but to report return rates of Henslow's Sparrows on readily available mowed and unmowed areas.
I was thrilled to see a 15 percent return rate when we carried out a Preward campaign.
Ahmed Abd al-Gawad, the Export Development Bank of Egypt's administrative director for client services, stated that his bank was considering raising return rates on bonds in order to keep pace with the market.
Similar techniques did not negatively affect return rates of female Wood Thrushes (Hylocichla mustelina), including hatching-year birds (Perkins et al.
Retailers typically lack visibility into return rates, especially for low-priced products," Hurt continued.
For the Year-One Return Rate (YRR) measurement, there was a 35% improvement in hardware returns.
We've been working hard to get the great mail return rates," said Vincent Kountz, Partnership Coordinator for the Census Bureau's Detroit Region, "but we will need continued support from everyone to reach our goal of surpassing the last census numbers by five percent.
The large numbers and return rates ensure accuracy, Gauer said.
Tony has an extensive background in manufacturing and testing of precision optical components, with excellent on-time performance and low return rates.
According to Robert Householder, the division's environmental issues manager, Sonoco's plastic bag recycling program is now in place at over 9,000 supermarkets nationally and is achieving return rates as high as 12 percent in areas where stores actively promote the concept.
The low return rates are a burden on police and railway operators, which is why the National Police Agency is revising Japan's "Lost Goods Law" to halve the time lost items are kept in custody.