Accounting Rate of Return in Financial Accounting Formulas

Accounting Rate of Return is a financial metric used to evaluate the profitability of an investment or project. And is denoted by ARR.

Formulas to find Accounting Rate of Return in Financial Accounting

fxAccounting Rate of ReturnGo

fx Average Annual Profit Go

fx Initial Investment Go

What is the Accounting Rate of Return?

Accounting Rate of Return is a financial metric used to evaluate the profitability of an investment or project.

Can the Accounting Rate of Return be negative?

{YesorNo}, the Accounting Rate of Return, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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