In general, the ratio of profit or loss to the capital that had to be invested to generate this result. – In a narrower sense, the ratio of the net profit generated during a given period, i.e. the profit after deducting all expenses, taxes and duties, to equity, the return on equity (the sum of net profit, i.e. the gross revenue after running costs and taxes have been deducted, relative to the amount of equity). – See gross profit, EBITDA, profit, price-earnings ratio, return, risk-return principle.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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