Understanding ARR: A Key Investment Metric πŸ“Š

ARR measures expected annual net income from an asset relative to its average capital cost, expressed as a percentage.

Understanding ARR: A Key Investment Metric πŸ“Š
Corporate Finance Institute
54.4K views β€’ Aug 8, 2018
Understanding ARR: A Key Investment Metric πŸ“Š

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Accounting Rate of Return (ARR) is the average net income an asset is expected to generate divided by its average capital cost, expressed as an annual percentage.

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Aug 8, 2018

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