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How do you calculate ROI?
Definition of 'Return On Investment - ROI'A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. The return on investment formula:
What is the importance of ratio analysis in accounting?
Ratio analysis in accounting is used to evaluate a firm's activity and productivity, as well as its efficiency in using its assets to generate profits. It is also used by investors in evaluating investment decisions.
How does a financial institution determine when to withhold tax on investment income?
A financial institution will determine if it should withhold tax on a investment if it receives notification from the IRS to do so. Once a social security number or tax payer identification number is provided, the IRS is notified to verify no withholding is required.
What does they annual expense ratio mean?
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.
What is inventory turn over ratio?
An inventory turn over ratio is the "cost of goods sold" is divided by the "average value" of inventories. This measure shows how hard an investment in inventory is working; the higher the ratio the better. For example, Office Depot increased its inventory turnover ratio from 6.9 in one year to 7.5 the next year which leading to improved annual profits.(Business Week,2004)
How can one determine the leverage ratio of a company or investment?
The leverage ratio of a company or investment can be determined by dividing the total debt by the total equity. This ratio helps assess the level of financial risk and the amount of debt used to finance operations.
How can I determine the cost basis of an investment?
To determine the cost basis of an investment, you can calculate the original price you paid for the investment, including any additional costs like commissions or fees. This information is important for calculating capital gains or losses when you sell the investment.
What is investment ratio?
it is the rati used in calculating the no and amount of funds investors contibuted to a company it is the rati used in calculating the no and amount of funds investors contibuted to a company it is the rati used in calculating the no and amount of funds investors contibuted to a company
How do you calculate capital gains tax on investment profits?
To calculate capital gains tax on investment profits, subtract the original purchase price of the investment from the selling price to determine the capital gain. Then, apply the capital gains tax rate to the gain to determine the tax owed.
The amount of an original investment is called?
the amount of an original investment is called
What was the original ratio of US Representatives to the citizens in the state?
the original ratio is 1:3,000
How do you calculate r-r ratio?
The R-R ratio, often used in finance, is calculated by dividing the risk premium of an investment by its expected return. First, determine the risk-free rate (such as the yield on government bonds) and the expected return of the investment. Subtract the risk-free rate from the expected return to find the risk premium. Finally, divide the risk premium by the expected return to obtain the R-R ratio.
What is risk return ratio?
The risk-return ratio is a financial metric that compares the expected return of an investment to the amount of risk involved in that investment. It helps investors evaluate the potential reward of an investment relative to its risk, allowing for better decision-making. A higher risk-return ratio indicates that an investment may offer a more favorable return for the level of risk taken, while a lower ratio suggests that the potential return may not be worth the risk. Investors often use this ratio to assess and compare different investment opportunities.
How is the expense ratio calculated for investment funds?
The expense ratio for investment funds is calculated by dividing the total expenses of the fund by its average net assets. This ratio represents the percentage of a fund's assets that are used to cover operating expenses.
What ratio is used to determine if the heart is enlarged?
Cardiothoracic ratio
What are the objectives of investment analysis?
This analysis is important to determine the risks of the investment. This is important before making an investment decision.
What is EPS and why is important in analysing share investments?
In its simplest form EPS (Earnings Per Share) gives an indication of how much of a company's profit is earned for each issued share. The ratio is calculated by dividing the Net Profit by the number of issued shares. The higher the ratio, the better is the investment. The EPS ratio is used to quickly differentiate between companies for investment purposes - as mentioned above the higher the ratio, the better the investment. Of course, this is only one measure of the the value of an investment. There are many other factors to be considered when making investment decisions, and such decisions should not be made on the basis of one ratio.
