RFR and Return on sales: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Recognise that RFRs are not entirely risk-free.)
 
imported>Doug Williamson
(Create page. Sources: Accounting tools https://www.accountingtools.com/articles/return-on-sales.html Big Commerce https://www.bigcommerce.co.uk/ecommerce-answers/what-is-return-on-sales-roas-why-and-how-retailers-should-rely-on-this-metric/)
 
Line 1: Line 1:
Risk-Free Rate.
''Accounting''.  


The abbreviation 'RFR' usually refers to risk-free benchmark interest rates, such as SONIA.
(ROS).


Also known as ''near'' risk-free rates, recognising that such rates are never entirely risk-free.
A measure of the surplus of revenues over relevant costs, expressed as a percentage of revenues, in the same way as profit margins.




Theoretically risk free rates of ''investment'' return, for example in the Capital asset pricing model, are more often designated by 'Rf' or 'rf'.
The surplus (return) may be defined in different ways.


So clarity and consistency of definition is essential.


==See also==
*[[Capital asset pricing model]]
*[[RFR WG]]
*[[Risk-free rate of return]]
*[[Risk-free rates]]
*[[SONIA]]


[[Category:Corporate_financial_management]]
== See also ==
[[Category:Financial_products_and_markets]]
* [[Gross profit margin]]
* [[Margin]]
* [[Margin on costs]]
* [[Net profit margin]]
* [[Operating profit margin]]
* [[Profit]]
* [[Profit margin]]
* [[Profitability]]
* [[Return]]
 
[[Category:Accounting,_tax_and_regulation]]

Latest revision as of 20:12, 31 July 2020

Accounting.

(ROS).

A measure of the surplus of revenues over relevant costs, expressed as a percentage of revenues, in the same way as profit margins.


The surplus (return) may be defined in different ways.

So clarity and consistency of definition is essential.


See also