IN PLAIN ENGLISH
How much of their sales money they are plowing back into invention and new tech. High spend often means a focus on future growth.
FULL DEFINITION
Research and Development to Revenue Trailing Twelve Months. The proportion of a company's revenue that is spent on research and development.
EXAMPLE
Revenue of $1B and R&D of $100M = 10% R&D/Revenue.
Educational content only. It is not personal financial advice.