Glossary


R
Ranks and Ratings
Ranks and Ratings refer to Value Line’s proprietary data, which includes our well-known ranks for Timeliness and Safety, as well as our Financial Strength grade and scores for Price Stability and Earnings Predictability.
Rate Base (Electric Utility Industries)

Usually the net original cost of plant and equipment; in some instances, including an allowance for cash, working capital, materials, and supplies.

Rate Base (Electric Utility Industry)

Usually the net original cost of plant and equipment; in some instances including an allowance for cash, working capital, materials, and supplies.

 

Real

In the context of economic activity, a measure that excludes the effects of inflation. Real Gross National Product, for example, is a measure of the nation's output of goods and services, adjusted for inflation.

Real Estate Investment Trust (REIT)

A financial intermediary that invests its equity capital and debt in income-producing real estate and mortgages. Under legislation passed in 1961, reits were granted conduit tax treatment (the same as that permitted mutual funds) under which the part of earnings which flows through to shareholders in the form of dividends is exempt from federal income taxes at the trust (or corporate) level, provided several conditions are met. Among the conditions for qualification as a reit under the internal revenue code: at least 90% of otherwise taxable income must be distributed to shareholders in the calendar year earned, and specified percentages of both investments and gross income must be related to real estate.

 

Real Estate Investment Trust(REIT)

A financial intermediary that invests its equity capital and debt in income-producing real estate and mortgages. Under legislation passed in 1961, REITs were granted conduit tax treatment (the same as that permitted mutual funds) under which the part of earnings which flows through to shareholders in the form of dividends is exempt from Federal income taxes at the trust (or corporate) level, provided several conditions are met. Among the conditions for qualification as a REIT under the Internal Revenue Code: At least 95% of otherwise taxable income must be distributed to shareholders in the calendar year earned, and specified percentages of both investments and gross income must be related to real estate.

Realized Gain or Loss

Profit or loss on the sale of an asset.

Realized Gains

The amount by which the sale price of an asset exceeds its purchase price

Realized Gains (or losses) per (common) share

Realized gains or losses for selected financial companies

Receivables

Loans held for investment for selected financial companies

Receivables (Financial Services Industry)

The amount of money owed to finance companies by customers at year end, net of unearned discount (the charges to the borrower) and loss reserves.

Receivables to Total Assets

Loans to total assets

Recent Price as of the Latest VLIA Build

Stock price as of the date of the creation of The Value Line Investment Analyzer

Recent Price Relative P/E Ratio

Relative P/E using Recent Price from current publishing cycle calculated on forward-looking earnings

Reinsurance Recoverable on Unpaid Losses & Loss Expenses

The amount of funds left over from estimated catastrophe costs after all claims have been settled

Relative P/E Ratio

Price to earnings ratio relative to the median price to earnings ratio for all stocks under Value Line review.

Relative Price-Earnings (P/E) Ratio

The stock's current P/E divided by the median P/E for all stocks under Value Line review. (See also Price Earnings Ratio.)

Relative Price-Earnings (PE) Ratio

The stock’s current P/E divided by the median P/E for all stocks under Value Line review. (See also Price Earnings Ratio.)

 

Relative Strength Heat Map

This is the relative price strength of a stock compared to the Value Line Composite.

Relative Strength Price Line

A representation shown in the price chart on each Value Line page as a series of dots. The line compares the price of a stock with the price of an index (in this case the Value Line Arithmetic Composite) over time. When the line is rising, the stock is acting better than the broad index. When it is falling, the stock is acting worse than the index.

Relative Volatility

The volatility of a security compared to the volatility of median sock. It indicates how much risk is involved as against the median stock in The Value Line Investment Survey.

Rental Income

Rental income for real estate investment trusts (REITs)

Research Note
Brief, analyst-created content that discusses an important news item (e.g. earnings release, acquisition rumor, etc.) that concerns a particular company or industry that Value Line tracks. The analyst’s assessment of the news, and how it will impact the stock or industry, is also included. Research Notes are commonly referred to as Supplementary Reports.
Reserve for Property-Liability Insurance Claims & Claims Expense

The amount that is reserved for payments on claims

Reserve Life (Natural Gas [Diversified] and Petroleum Industries)

A company's reserves of oil, gas, or other natural resources divided by annual production.

Reserve Replacement Ratio (Natural Gas and Petroleum Industries)

The ratio of reserve additions to production. Reserve replacement is calculated by summing the total reserves added over a five-year period. The ratio is calculated by dividing replacement by production over the same period.

Retail Sales

A monthly measure of all U.S. retail activity, published by the Commerce Department.

Retained Earnings

Net profit for the year, less all common and preferred dividends, when relating to the income account. With respect to the balance sheet or common equity, it is the sum of net profit in all years of the company's existence less all dividends (common and preferred) ever paid. In this case, also known as earnings retained or earned surplus.

Retained to Common Equity

Net profit less all common and preferred dividends divided by common equity including intangible assets, expressed as a percentage. Also known as the Plowback Ratio.

Retained to Partners' Capital

Net profit less distributions divided by total capital

Return on Shareholders' Equity

Annual net profit divided by year-end shareholders' equity, expressed as a percentage.

Return on Shareholders’ Equity

Annual net profit divided by year-end shareholders’ equity

 

Return on Total Capital

Annual net profit plus 1/2 of annual long-term interest divided by the total of shareholders' equity and long-term debt, expressed as a percentage.

Return on Trust Equity

Percent net profit to trust equity

Return on Unit Holders' Capital

Percent net profit to unit holders' capital

Revenue

Gross volume less returns, discounts, and allowances. Also known as net sales.

Revenue Passenger Miles (Air Transport Industry)

A measure of airline traffic. Each revenue passenger mile represents one revenue-paying passenger flown one mile.

Revenue Share Obligations

Revenue share obligations, as stated by the company

Revenues (Banks)

This figure has not been used by most banks in the past. However, the combination of net interest income and non-interest income will provide investors with a close approximation.

Revenues (Electric Utility, Natural Gas [Distribution], Telecommunications Industries)

The amounts billed for services rendered.

Revenues (Real Estate Industry)

The total of rental, construction, and interest income and property sales.

Revenues Per Share

Gross revenues for the year divided by the number of common shares outstanding at year end.

Risk of Portfolio -

The various factors that investors should consider when constructing a portfolio. A stock's Beta and the portfolio's Sharpe Ratio are just two metrics that can be used to measure risk.

Risk-Adjusted Return

The return expected for an assumed level of risk.