0
A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual calculation, where a fund's operating expenses are divided by the average dollar value of its assets under management.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
What is the formula for calculating interest coverage ratio?
operating income vefore interest and income taxes / annual interest expense
What does expense mean?
It means it is worth a lot.
Can annual expense such as liability ins be divided by 12 months and expenses each month?
stupid person!
What type of expensis in debit?
if you mean what type of expense is a debit, a debit is a liability, so therefore it is an expense.
When would a business have negative interest income?
It wouldn't be a negative.....if you're looking at an annual filing and it shows a positive interest expense line and a negative interest income line....it doesn't mean that the interest income is actually negative....it offsets the interest expense...since all positive amounts are actually being deducted from Net Sales
What is the formula for calculating interest coverage ratio?
operating income vefore interest and income taxes / annual interest expense
What is the difference between gross expense ratio and net expense ratio?
Net Expense RatioThe net expense ratio is the expense ratio of the fund after applicable expense waivers or reimbursements. This is the actual expense ratio that investors paid during the fund?s most recent fiscal year. Gross Expense RatioThe gross expense ratio is the fund's total annual operating expense ratio. It is gross of any fee waivers or expense reimbursements. Why are these fees waived? In the case of funds with smaller assets, the gross total expense ratios may be much higher than net total expense ratios. This is true because certain fixed costs, such as legal and custodian fees, have a disproportionate impact on the expense ratio of a smaller fund in comparison to a larger fund. Mutual fund families also may choose to waiver fees to make the pricing of a fund more competitive. What types of expenses are included in the gross and net expense ratios? There is no difference in the types of expenses within a gross or net expense ratio. The net expense ratio is simply the gross expense ratio of a fund less any waivers or reimbursements. What caused the need for reporting both the gross expense ratio? Were there abuses of some sort going on? While there are no specific abuses of which we are aware, there is the potential that a fund family can discontinue a fee waiver without a shareholder vote. The NASD thought it was important that investors be aware of the potential gross expense ratio, in addition to the actual net expense ratio that investors paid. Ultimately this will not affect your investments or cause any reason for change. This is more or less a new reporting requirement that is put in place to provide as much objective information regarding a mutual fund as possible. You will still primarily be concerned with the net expense ratio since that is what will determine your real return, but you will begin to notice this additional number being reported on investment materials and online.
What does no fee software mean?
It simply means that they do not want a software that cost's an annual amount, or a monthly expense.
How calculate expense-to-sales ratio?
sales to expense ratio should be under 10% of your net sales, on a monthly basis
What is a spread ratio?
Spread Ratio: Interest Earned / Interest Expense
What is spread ratio?
Spread Ratio: Interest Earned / Interest Expense
What is the average expense to sales ratio for a sales representative?
The average expense to sales ratio for Pharmaceutical sales representative is around 8 to 12 % in Pakistan
How To Understand A Mutual Fund’s Expense Ratio?
When investing in mutual funds, you'll undoubtedly hear a lot about a fund's expense ratio. Everybody will tell you that you should look for a fund with a low expense ratio but not all expense ratios are created equal. There are several components that go into the fund's final expense ratio and some of them may affect you differently. The largest component of an expense ratio is the fee that's paid to the fund's managers. They're managing your money for you and they need to be paid for it. Even with an index fund there is periodic portfolio rebalancing and managing the fund's cash position that requires a fee. In addition, the expense ratio may include an additional fee that covers things such as recordkeeping, account maintenance and legal fees incurred by the fund. Although typically a much smaller percentage than the core management fee, this fee should be broken down in the fund's prospectus as well. Finally, you may see mention of a 12b-1 fee. This is a marketing expense a fund can assess for promotion and advertisement and can be charged back to the fund's shareholders. These three pieces together typically comprise a fund's complete expense ratio. It's worth noting the additional fees that typically do not fall under a fund's expense ratio. Account maintenance fees – annual fees typically charged to lower balance accounts – fall outside of the expense ratio. Sales loads – a percentage that a broker typically charges you to buy or sell mutual fund shares – come in addition to the fund's expense ratio. Trading fees such as early redemption fees don't count in the fund's expense ratio either. While a fund's expense ratio will in most cases comprise the biggest portion of expense you'll pay, the bottom line is that you have to understand all potential fees and charges that go into mutual fund ownership. Keep aiming for funds with low overall fees and expenses and you'll end up with more money in your pocket.
Is recording an annual depreciation expense an accrued expense?
Yes. Annual depreciation is the method by which we allocate the cost of a tangible asset over the course of its useful life independent of the cash flows associated with it. As a result, it is considered an accrued expense.
Can an annual credit card fee be a prepaid expense?
yes
What does Personal Debt Ratio 99 percent mean?
It means that the person's debt is equivalent to 99 percent of their [annual] income.
What is the price-earning?
If you mean the price-earnings ratio. It is the price per share of a common stock divided by the annual earnings of the stock.
