The risk-free rate is a key concept when valuing potential investments and balancing portfolios. It is simply the current interest rate paid on any investment deemed to be 'risk-free' (i.e. US/UK/Germ...
A firm's revolver is a line of short-term credit which the firm can access when it needs short-term funding to pay for operating expenses or one-time transactions. The revolver is always use...
A reverse repo is simply the other side of a repo agreement, i.e. purchasing assets at a given price with an agreement to sell them back at a higher price at some point in the futu...
Revenue is one of the most basic and fundamental financial figures for a company. It is the total amount of income from the sale of its products and/or services. Revenue is also known as gross income....
Return on Investment, or ROI, is an indicator of the profitability of an investment relative to the amount invested. The calculation for ROI is:( Final Value of Investment - Cost of Investment ) / Cos...
Return on Equity, or ROE, is an indicator of the profitability of a firm relative to the shareholders equity of the firm. The calculation for ROE is:Net Income / Shareholders EquityReturn on Equity is...
Return on Assets, or ROA, is an indicator of the profitability of a firm relative to the assets of the firm. The calculation for ROA is:Net Income / Total AssetsReturn on Assets is used to assess how ...
A retreat is a term used in the movement of assets such as indices, bonds and equities. It refers to the continuous fall in price, usually by a large amount. Typically, a retreat will occur after pric...
A retracement is when the price of an asset or index moves against the general trend and reverses direction, i.e. during a rally it falls. Usually a retracement is only temporary and the general trend...
A retainer is a fee paid in a takeover firm in case the deal falls through. The company making the acquisition will include the payment as a sign of their good faith and intent to follow through with ...