Glossary

Return

Operating ratio that measures the profitability of a company or, more generally, an investment.

Return indicates the relationship between profit and capital deployed (return on invested capital, or ROIC) or between profit and sales (return on sales). The return on an investment in securities is calculated by taking the current price of the security plus interest or dividend payments received, less the capital invested. If this value is positive, the investment is considered to be profitable.

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