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- Rate of return (RoR), also known as 'rate of profit' or sometimes just 'return', is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested
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Rate of profit. In economics and finance, the profit rate is the relative profitability of an investment project, a capitalist enterprise or a whole capitalist economy. It is similar to the concept of rate of return on investment.
Normal profit and economic profit are economic considerations while accounting profit refers to the profit a company reports on its financial statements each period. Normal profit = Total revenue – Total costs
BIBLIOGRAPHY. The rate of profit is defined as ratio of profits, the difference between total revenues and total costs, to the capital advanced for production. Theories differ in terms of how both profits and capital are defined. The profit rate is also defined on the aggregate or economy-wide level, the industry level, and the firm level.
Learn more. On the Rate of Profit. By Cahal Moran. Depending on who you ask, we at Rethinking Economics are either ragingly Marxist or not Marxist enough. For the purposes of this series, though, the question is which parts of Marxism contain coherent economic theories which we can test empirically.
- Essay
- Macroeconomics
- Marxian Political Economy, Other
Mar 22, 2024 · Published Mar 22, 2024. Definition of Rate of Profit. The rate of profit, in economic terms, refers to the ratio of profits earned (net income) to the capital invested. It is a measure of the efficiency and effectiveness with which a company or an investor uses capital to generate earnings.
May 12, 2023 · Profitability Ratios allow an investor to measure the ability of a firm to earn an adequate return on sales, total assets, equity, and invested capital. As with all financial ratios, the profitability ratios must be compared to a company’s competitors as well as the market as a whole.
