Comment

Overnight Open Thread

98
Nimed5/28/2010 1:06:14 am PDT

re: #97 sattv4u2

Sattv, regarding this comment:
littlegreenfootballs.com

RoR takes into account taxes, interest, taxes, depreciation and amortization.

RoR=(net income)/revenue;
net income - A company’s total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. This number is found on a company’s income statement and is an important measure of how profitable the company is over a period of time. The measure is also used to calculate earnings per share.

Sources:
RoR - investopedia.com
net income - investopedia.com