| Rate of Return | Annual return on an investment. Rate of return may refer to the dividend yield or it may refer to the total return rate. | |
| Ratio Analysis | The examination of the relationships between a firm's accounting numbers and trends over time. | |
| Retained Earnings | Earnings a company reinvests in its core business or to retire debt, after it pays dividends. | |
| Return on Assets (ROA) | A ratio calculated by dividing the company's EBIT (net income) by total assets. The ROA is one of the most commonly used profitability ratios. | |
| Return on Equity (ROE) | A ratio calculated by dividing the company's net income before common stock dividends are paid by the company's shareholder's equity. This ratio measures how much a company earns in relation to the amount invested in its common stock. | |
| Return on Sales | A ratio calculated by dividing pre-tax profit by total sales. This relationship measures the efficiency of operations by showing the profits earned per dollar of sales. | |
| Revenue | Money collected for providing a product or service. Companies that provide services, such as telecommunications, generally use the term revenue; whereas companies that manufacture products, such as automobiles, often use the term sales. |
