NET RETURN Meaning and
Definition
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Net return refers to the amount of profit or income generated from an investment or business activity after deducting all associated costs, expenses, and taxes. It represents the final financial result after subtracting all the necessary deductions from the total revenue or gross return. The net return is a key measure used by investors, businesses, and financial analysts to evaluate the profitability and performance of an investment or business venture.
In the context of investments, the net return takes into account expenses such as management fees, transaction costs, advisory fees, and taxes paid on the investment income. It provides investors with a more accurate reflection of the actual returns they receive after accounting for all costs. Similarly, in the business realm, net return includes deductions for operating expenses, production costs, taxes, and other relevant expenses incurred in the normal course of business.
The net return is often expressed as a percentage, known as the net return rate, which indicates the profitability or efficiency of the investment or business over a specific period. A higher net return signifies a more successful and profitable venture, while a lower net return may indicate inefficiency or a suboptimal investment. It is crucial for investors and businesses to carefully analyze and monitor net returns to make informed decisions, assess risk, and determine the overall financial health of an investment or business enterprise.
Common Misspellings for NET RETURN
- bet return
- met return
- jet return
- het return
- nwt return
- nst return
- ndt return
- nrt return
- n4t return
- n3t return
- ner return
- nef return
- neg return
- ney return
- ne6 return
- ne5 return
- net eeturn
- net deturn
- net feturn
- net teturn
Etymology of NET RETURN
The word "net return" derives from two separate terms, "net" and "return".
The term "net" is derived from the old French word "net", meaning "clear, pure". It entered the English language in the 14th century and originally referred to the remaining amount after deductions or losses. Over time, it came to denote the final, adjusted amount after all deductions and expenses.
The term "return" comes from the Old French word "retorner", which means "to come back" or "to go back". It ultimately traces back to the Latin word "re-" meaning "again" and "tornare" meaning "to turn". In English, "return" came to mean the act of going or coming back, or the act of giving or sending something back.
