return on debt (ROD)

Definitions (2)

1. A yield obtained on debt issued by a company. ROD can either be positive or negative. A positive ROD is beneficial to a company as it indicates that income is being generated from the debts issued by the company, where a negative ROD is the opposite.
2. Revenue received after operating expenses for each dollar of debt undertaken. Used by companies to measure whether the use of debt to fund themselves is in their best interest.
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