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Recycle Ratio

Recycle Ratio Definition

Measures the profitability of an energy company through comparing the profit per unit divided by the total cost of discovering and extracting that unit. Higher ratio means greater profitability of the company. Usually it can be found in the quarterly report of the firm.


Additional meaning of Recycle Ratio:

Computing the ratio depends on the accounting practices used by the company, so it can be slightly different in case of different firms. Therefore it is not always a precise measure of profitability.


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