Definition
RoR is a financial metric that measures a company�s ability to generate profit from its revenue, calculated by dividing net profit by total revenue.
Related Services
Financial management, performance analysis, and revenue optimization services help businesses enhance their RoR by increasing profitability while controlling costs.
Problem and Application
A low RoR indicates that a company may be struggling to convert revenue into profit, requiring better cost management or pricing strategies.
Conclusion
RoR is a critical metric for understanding how efficiently a company converts revenue into profit, guiding operational and financial decision-making.
