The Accounting Rate of Return (ARR) is an accounting metric that measures the profitability of an organization by comparing the profit before interest and taxation to the capital employed over a specified period. Commonly used variants include profit after interest and taxation and average capital employed for the period.
The Accounting Rate of Return (ARR) is a financial ratio used to measure the expected profitability of an investment, defined as the ratio of average annual accounting profit to the initial investment cost.
