Forfaiting Glossary

Glossary Items beginning with : R


Return on Equity is the ratio of net income of a business during a year to its stockholders’ equity during that year. It is a measure of profitability of stockholders’ investments. It shows net income as a percentage of shareholder equity.


Return on Investment as a performance measure is used to evaluate the efficiency of an investment. The benefit is the return on capital of the investment divided by the cost of that investment.