Glossary

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 Rack price

Price at which the majors and independent refineries sell branded or unbranded gasoline to jobber/wholesalers. It is related to the commodity spot price, but adjusted for transportation, overhead, and profit.

 radius of influence

the maximum distance away from an air injection or extraction source that is significantly affected by a change in pressure and induced movement of air.

 reagent

a substance or solution used in a chemical reaction, especially those used in laboratory work to detect, measure, or produce other substances.

 recalcitrant

unreactive, nondegradable; refractory.

 redox

short for oxidation-reduction.

 refractory index

a measure of the ability of a substance to be biodegraded by bacterial activity. The lower the refractory index, the greater the biodegradability.

 Renewal Option

An option given to the lessee to renew or extend the term of a lease at the expiration of the base term.

 Rentals

Payments required under a lease to be made by a lessee to a lessor for the use of the lease equipment.

 Retail Accounting Method

A method by which a business can maintain and account for the value of its inventory. (For another method, see “Cost Accounting Method” in this glossary.) In the Retail Accounting Method, inventory is kept at its retail value. As items are added to inventory, they are marked up to reflect their retail price and the value of the inventory increases by that amount. As items are sold, the value of the inventory falls by an amount equal to the retail price of the items sold. Within your franchise, store merchandise is maintained by this method.

 Retail price

petroleum price set by a marketer selling to the general public.

 RETAINED EARNINGS

Net profits accumulated through the company’s life and reported in the net worth or equity section of the balance sheet. Note: Can be negative if losses occur.

 retardation

preferential retention of contaminant movement in the subsurface resulting from adsorptive processes or solubility differences.

 Return on Assets Ratio

measures how much profit the business generated with the assets available to it. A high number means that the manager of the business did an excellent job of using the business’ inventory and equipment to bring in a high level of net profit. The formula for Return on Assets (ROA) is as follows:
Return on Assets = Net Profit (after Tax) ÷ Total Assets

 Return on Equity

measures the return that the owner realized on his investment in the business. Return on Equity measures the net profit (after tax) generated by the business to the net worth of the business (that is, owner’s equity). The number produced lets the owner evaluate the return being realized on his investment in the business. The formula for Return on Equity (ROE) is as follows:
Return on Equity = Net Profit (after Tax) ÷ Net Worth

 RETURN ON INVESTMENT

The amount of profit (return) based on the amount of resources (funds) used to produce it. Also, the ability of a given investment to earn a return for its use.