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Key Financial Metrics and Ratios: ROA, ROE, and ROIC
 
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Learn key financial metrics & ratios to analyze companies financial statements. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You’ll learn about the key metrics and ratios used to analyze companies’ financial statements, including Return on Equity (ROE), Return on Assets (ROA), and Return on Invested Capital (ROIC), as well as Inventory Turnover, Receivables Turnover, Payables Turnover, the Current Ratio, and the Asset Turnover Ratio. Table of Contents: 1:15 Why Metrics and Ratios Matter 4:58 Return on Equity (ROE), Return on Assets (ROA), and Return on Invested Capital (ROIC) 10:50 Asset-Based and Turnover-Based Ratios 14:40 Interpretation of Key Metrics and Ratios for Wal-Mart, Amazon, and Salesforce 19:32 Why the Key Metrics and Ratios Are Sometimes Not That Useful Why Metrics and Ratios? They let you evaluate and compare different companies, and see why one company might be worth more (higher valuation multiple) than others. They let you answer questions such as: How much equity is required to generate a certain amount of after-tax profit (Net Income)? How much in assets is required to generate a certain amount of after-tax profit (Net Income)? How much total capital is required to do this? How dependent is a company on its assets? How liquid is the company? Can it meet its obligations? How quickly does it sell all its Inventory, pay its outstanding invoices, and collect its receivables? ROA, ROA, and ROIC Return on Equity (ROE) = Net Income / Average Shareholders’ Equity Return on Assets (ROA) = Net Income / Average Assets Return on Invested Capital (ROIC) = NOPAT / (Total Debt + Equity + Other Long-Term Funding Sources) Return on Equity (ROE): How efficiently is a company using its equity to generate after-tax profits? Return on Assets (ROA): How well is a company using its assets / how dependent is it on them? Return on Invested Capital (ROIC): How well is a company using ALL its capital, or how much capital is required to grow its business? Here, Wal-Mart easily ranks #1 in all these metrics because it has a very high ROE of 20-25%, an ROA of close to 10%, and an ROIC of 13-14%; for Amazon and Salesforce, these numbers are negative or close to 0%. Asset-Based Ratios and Turnover-Based Ratios Asset Turnover Ratio = Revenue / Average Assets How dependent is a company on its asset base to generate revenue? Current Ratio = Current Assets / Current Liabilities How liquid is a company? Can it use its short-term assets to repay its short-term obligations, if required? Inventory Turnover = COGS / Average Inventory How many times per year does a company sell off all its Inventory? Receivables Turnover = Revenue / Average AR How quickly does a company collect its receivables from customers that haven’t paid in cash yet? Payables Turnover = COGS / Average AP (*) How quickly does a company submit cash payment for outstanding invoices? Interpretation of Figures for Wal-Mart, Amazon, and Salesforce On the surface, many of these metrics make Wal-Mart seem like a "better" company - much higher ROE, ROA, and ROIC, and Amazon is negative on some of those! Wal-Mart tends to have higher margins as well, and shows more consistency with those margins. Similar inventory management, but Wal-Mart collects from customers and pays invoices much more quickly than Amazon. Wal-Mart is levered a bit more heavily, though. And yet… Amazon is a much more expensive stock, or at least it was at this point in time, and the market values it much more highly based on metrics such as the P / E ratio. At the time of this analysis, Wal-Mart P / E Ratio = 16x, and Amazon P / E Ratio = 456x! How could that be possible? Is Amazon really nearly 30x as valuable as Wal-Mart with WORSE metrics? Answer: The "Revenue Growth" line tells the whole story here. You're comparing 2 very different companies – one is a mature, predictable, mostly slow-growing firm, and one is growing revenue at 20-30% per year, despite revenue in the tens of billions already. Admittedly, Amazon's valuation still seems ridiculous, but it's not that surprising it's valued more highly than Wal-Mart, given that it's growing 20-30x more quickly. The Bottom-Line: These metrics are MOST useful when comparing companies of similar sizes, growth rates, and margins – not as useful when you're comparing a high-growth company to a stable, mature firm. RESOURCES http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Key-Financial-Metrics-Ratios.xlsx http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Key-Financial-Metrics-Ratios.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Amazon-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Salesforce-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Walmart-Financial-Statements.pdf
Return on Investment (ROI) | Managerial Accounting | CMA Exam | Ch 11 P 2
 
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Residual income, common fixed cost, Return on investment, ROI, segment margin, traceable fixed cost Present value of single amount, present value of annuity, ordinary annuity, annuity due, future value of annuity, future value of annuity, return on investment, net present value, NPV, internal rate of return, IRR, payback period, cost of capital, capital budgeting, simple rate of return, Ratio analysis, book value per share, return on stockholders equity, return on equity, payout ratio, retention ratio, financial statement analysis, profitability ratio, long term solvency ratio,
The Return on Sales Ratio
 
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Help us learn more about your experience by completing this short survey: https://www.surveymonkey.com/r/RRKS8LZ Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusinessacademy?sub_confirmation=1 Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy: http://bit.ly/1Iervwb View additional videos from Alanis Business Academy and interact with us on our social media pages: YouTube Channel: http://bit.ly/1kkvZoO Website: http://bit.ly/1ccT2QA Facebook: http://on.fb.me/1cpuBhW Twitter: http://bit.ly/1bY2WFA Google+: http://bit.ly/1kX7s6P The return on sales is a type of profitability ratio that measures how effectively a firm uses its sales revenues to generate profit. In this video you'll learn how to calculate the return on sales as well as how to evaluate a firm's return on sales. Photo by Rick Tap: https://unsplash.com/@ricktap
Return on Investment (ROI) and Residual Income (RI) - ACCA Performance Management (PM)
 
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Return on Investment (ROI) and Residual Income (RI) - Divisional performance measurement - ACCA Performance Management (PM) *** Complete list of free ACCA lectures is available on OpenTuition.com https://opentuition.com/acca/pm/ *** Free lectures for the ACCA Performance Management (PM) Exam To benefit from this lecture, visit opentuition.com/acca to download the notes used in the lecture and access ALL free resources: ACCA lectures, tests and Ask the ACCA Tutor Forums Please go to opentuition to post questions to ACCA Tutor, we do not provide support on youtube.
Views: 3542 OpenTuition
What is return on investment ratio?
 
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In order to calculate return on investment ratio follow the link: http://www.financialratioss.com/profitability-ratios/return-on-investment More info on other financial ratios can be found here: http://www.financialratioss.com Full description: What is return of investment? Return of investment (ROI) is a measure which evaluates the efficiency of investment. This is very popular and often used ratio. Common Norms and limitations: Negative value of return of investment shows an unprofitable use of company's assets. While evaluating company's activity it is important to realize that ROI is only one of many financial ratios and relying only on it would not be recommended. How to calculate return of investment? Data to calculate this measure is collected from the income statement. It is worth mentioning that this ratio can be calculated in many ways but mostly two of it is used in practice. ROI can be calculated to evaluate the whole activity of a company and of separate project as well.
Views: 1534 FinancialratiossCom
How to Calculate ROA (Return on Assets)
 
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This video shows how to calculate a company's Return on Assets (ROA). It provides an example to show how ROA can be used to compare firms' performance. ROA is calculated by dividing a company's Net Income by its Average Total Assets. You can compute the Average Total Assets by adding the company's total assets from its most recent Balance Sheet date to its total assets from the previous year's Balance Sheet date and dividing the sum by two. You use the Average Total Assets because you want to approximate the amount of assets the company had during the year (or quarter, month, etc.) during which the company generated the Net Income. Examining ROA is important, because it measures how profitable a company is after taking into consideration its assets. To show why this matters, think about the following example: let's say two entrepreneurs earned a profit of $1,000 in their first year of business. They might seem equally successfully because they earned the same profit, but what if one of the entrepreneurs began with just $50 in assets whereas the other entrepreneur started out with $10,000,000 in assets? They both earned the same profit, but one of the entrepreneurs did more with less. Thus, ROA measures how efficient a company was at generating profit from its assets. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 19715 Edspira
Compare Mutual Funds | Alpha, Beta, Standard Deviation & Sharpe Ratios | Mutual funds for Beginners
 
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Comparing two mutual funds can be a tricky task. Comparing funds only based on their past performance is not a right method to compare, there are lot of other factors you should consider like AUM of funds, experience of the fund, Fund Manager, Fund house overall performance and Risk Ratios. Actually, these ratios are referred to as measures of Risk. But, they measure the volatility associated with a financial instrument. This volatility leads to Risk and correspondingly understand the return profile of the fund too. Let’s now discuss more details about these ratios like Standard Deviation, Alpha Ratio, Beta Ratio and Sharpe Ratio and try to understand their importance when selecting the right and best mutual fund scheme. You need to give importance to both returns and measures of volatility while short listing mutual fund schemes. Data Credit: Value Research, Moneycontrol.com and AMFI Find us on Social Media and stay connected: Facebook Page - https://www.facebook.com/InvestYadnya Facebook Group - https://goo.gl/y57Qcr Twitter - https://www.twitter.com/InvestYadnya
ACCA F5 Divisional performance measurement - Return on Investment (ROI), Residual Income (RI)
 
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ACCA F5 Divisional performance measurement - Return on Investment (ROI), Residual Income (RI) Free lectures for the ACCA F5 Performance Management Exams
Views: 12628 OpenTuition
Return on Investment (ROI)
 
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Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost, most commonly measured as net income divided by the original cost of the investment. Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/finance/return-on-investment-roi-formula/
CIMA P2 - 9 Performance measures - ROI, RI, EVA
 
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For your free course notes to accompany this video visit www.theexpgroup.com/expand/
Views: 10349 theexpgroup
Portfolio evaluation measures
 
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Apply the Sharpe ratio, M2 measure, Treynor ratio, Jensen’s alpha, and information ratio to evaluate portfolios.
Views: 12839 Paul Docherty
The Return on Equity Ratio
 
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Help us learn more about your experience by completing this short survey: https://www.surveymonkey.com/r/RRKS8LZ Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusinessacademy?sub_confirmation=1 Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy: http://bit.ly/1Iervwb View additional videos from Alanis Business Academy and interact with us on our social media pages: YouTube Channel: http://bit.ly/1kkvZoO Website: http://bit.ly/1ccT2QA Facebook: http://on.fb.me/1cpuBhW Twitter: http://bit.ly/1bY2WFA Google+: http://bit.ly/1kX7s6P Return on equity is a type of profitability ratio that measures how successful a firm is at using its investments to generate profit. Using the return on equity formula, investors can determine how much profit they're receiving for each dollar in equity investment. Not only does this financial ratio allow investors to determine if their making a good investment, but it also allows them to compare the company's performance to that of other firms. Learn more about return on equity or ROE in the latest lecture from Alanis Business Academy. __________ Photo by Rick Tap: https://unsplash.com/@ricktap
Ratio Analysis - Profitability
 
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Profitability ratios look at the returns earned by a business both in terms of its trading activities (sales revenue) and also how much is invested in earning those returns (capital employed). This revision video introduces the four main profitability ratios.
Views: 86986 tutor2u
How to find the Expected Return and Risk
 
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Hi Guys, This video will show you how to find the expected return and risk of a single portfolio. This example will show you the higher the risk the higher the return. Please watch more videos at www.i-hate-math.com Thanks for learning !
Views: 217120 I Hate Math Group, Inc
CFROI: The HOLT Measure of Return on Capital
 
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Learn what CFROI is, how it's calculated, and why it's a clearer and more consistent measure of performance than traditional accounting measures. For more information visit http://www.credit-suisse.com/holtmethodology ------------------------------------------------------------------------------------------ Check out our e-learning playlist for more related videos: http://www.youtube.com/playlist?list=PLE57332290C644C39 Subscribe to our channel: http://www.youtube.com/subscription_center?add_user=creditsuissevideos Visit our website for more information: http://www.credit-suisse.com Connect with us on: YouTube: http://www.youtube.com/creditsuissevideos Twitter: http://www.twitter.com/creditsuisse Facebook: http://www.facebook.com/creditsuisse Flickr: http://www.flickr.com/creditsuisse Google: https://plus.google.com/+creditsuisse
Views: 13441 Credit Suisse
Asset Turnover Ratio, Profit Margin On Sales Ratio, Rate Of Return On Assets (ROI)
 
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Accounting for evaluating assets relative to activity (turnover) and profitability, 1-Asset Turnover Ratio, 2-Profit Margin on Sales and 3-Rate of Return on Assets, (1) Asset Turnover Ratio: How efficiently a company uses its assets to generate sales, (net sales/average total assets) = equals asset turnover ratio, (2) Profit Margin on Sales Ratio: (Rate of Return on Sales), how profitably the company uses its assets, (net income/net sales) = profit margin on sales, and (profit margin on sales x asset turnover ratio) =rate of return on assets, (3) Rate of Return on Assets (ROI): The rate of return a company acheives through use of its assets, (net income/average total assets) = rate of return on assets, detailed calculations by Allen Mursau
Views: 18835 Allen Mursau
Investment Performance Measures
 
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Calculating Jensen, Treynor, Sharpe, and M Squared for investment portfolios.
Views: 8523 Jeff Davis
ROIC Return On Invested Capital
 
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How to calculate ROIC (Return On Invested Capital)? We will start off with explaining how ROA (Return On Assets) relates to ROIC, go through the definition of ROIC, and analyze the ROIC calculations of 3 well-known companies. You learn most by applying concepts to real-life situations, so please watch the entire video to get the full picture! ROIC (Return On Invested Capital) is very closely related to the easier to understand metric ROA (Return On Assets), so it makes sense to quickly walk through the definition of ROA first. Return On Assets is simply Net Income divided by Total Assets. To find the Net Income of a company, you take its income statement or profit and loss statement, and go to the very bottom: the line called Net Income, also known as “the bottom line”. This is the numerator in the equation. Then for the denominator, you turn to the balance sheet, and take the number of Total Assets at the bottom on the left. As a balance sheet needs to balance between what a company owns (on the left) and what a company owes (on the right), you could also take the sum of all liabilities and equity, as this is the same number. So Return On Assets is very easy to calculate. If you want to improve the ROA of your company, you either work on initiatives to generate more Net Income, and/or initiatives to lower the Assets base. This is covered in a related video on Return On Assets that I will link to: https://www.youtube.com/watch?v=W5CrcMSBARU What is the definition of ROIC and how does it differ from ROA? Let me walk you through the semi-official definition of ROIC. The reason why I call this semi-official will become clear to you when we go through the examples of real-life companies disclosing their ROIC calculation later in this video. In the numerator of the ROIC calculation are the returns generated for debt & equity holders, in the denominator is Debt plus Equity. More specifically, the returns generated for debt & equity holders are usually defined as after-tax interest + Net Income. Another description for the same thing is Net Operating Profit After Tax (NOPAT). With after-tax interest + Net Income, you start at the bottom of the income statement, and work your way up. With Net Operating Profit After Tax, you start a little higher in the income statement, and work your way down. From this definition of ROIC, you immediately see that the numerator of ROIC under normal economic circumstances is likely to be higher than the numerator of ROA: After-tax interest + Net Income should be higher than Net Income by itself. For the denominator of the equation, the sum of Debt and Equity is lower than Total Assets. If you compare ROIC to ROA, then the numerator in the ROIC equation is higher, and the denominator is lower. So in total, the outcome of the ROIC calculation should always be higher than the outcome of the ROA calculation. A related video compares ROIC to ROE, ROA and ROI: https://www.youtube.com/watch?v=cBaFHRfpOK8&index=15&list=PLKbmcnUUQMllBmY-09UdYNYZHBNHAODpR Let’s compare the way 3M, GM and Home Depot have defined and calculated ROIC, as we are not looking at apples-to-apples comparisons. 3M has nicely summarized why! Return on Invested Capital (ROIC) is not defined under U.S. generally accepted accounting principles. Therefore, ROIC should not be considered a substitute for other measures prepared in accordance with U.S. GAAP and may not be comparable to similarly titled measures by other companies. The Company defines ROIC as adjusted net income (net income including non-controlling interest plus after-tax interest expense) divided by average invested capital (equity plus debt)….” So 3M’s definition is very similar to the semi-official definition I showed earlier. Let’s go through each company’s ROIC calculation in detail. Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investing decisions. Philip delivers #financetraining in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
DuPont analysis explained
 
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DuPont equation tutorial. ROE: Return On Equity. ROA: Return On Assets. ROS: Return On Sales. This video takes you through the financial ratios of the ROE formula, the ROA formula, the ROS formula, asset turnover and leverage, and shows how they fit together. The very basics and the very essence of financial ratio analysis! ROE or Return On Equity is defined as Net Income divided by Equity. In other words, the net profit that a company has generated during a year, divided by the book value of the shareholder capital invested in the company. ROE is a measure of the rate of return to shareholders. The 3-part version of the DuPont analysis shows you that ROE = ROS x asset turnover x leverage. The first two elements together, ROS multiplied by Asset Turnover, form ROA, Return On Assets. This ratio of ROA has many variations, some companies measure ROIC Return On Invested Capital, ROTC Return On Total Capital, ROCE Return On Capital Employed, or RONOA Return On Net Operating Assets. These are all variations on the same theme, you look at the returns (profit) generated during a period, and compared them to the capital invested in the company to generate those returns. ROA is an indicator of business success, influenced by two factors: ROS or margin performance, and asset turnover which you could call speed or velocity. ROS or Return On Sales, is Net Income divided by Sales, which is an indicator of the relative profitability or operating efficiency: how many cents of profit are generated for every dollar of sales? Asset Turnover is calculated as Sales divided by Assets, a measure of asset use efficiency. The last element of the DuPont 3-part equation is leverage, Assets divided by Equity. You can expand the DuPont formula to 5 steps, if you want even more analytical insight into the drivers of where your ROE increase or decrease is coming from. The two elements on the right stay the same: asset turnover and leverage. However, ROS gets split into three elements: Net Income divided by Earnings Before Tax, which is called tax burden, Earnings Before Tax divided by EBIT, called interest burden, and EBIT divided by sales, which is EBIT%. In a lot of companies, improving the EBIT% and increasing the Asset Turnover, are important targets for the management team, whereas the other elements are for the finance, treasury and tax departments to manage. For an illustration of Return On Assets, my follow-up video analyzing ROA, ROS and asset turnover of Verizon and Walmart is highly recommended https://www.youtube.com/watch?v=2j8bfR8KqJ0 Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
What is Sharpe Ratio? | Definition of Sharpe Ratio | Mutual Fund Risk Ratios
 
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Sharpe ratio is a measure of excess portfolio return over the risk-free rate relative to its standard deviation. If two funds offer similar returns, the one with higher standard deviation will have a lower Sharpe ratio. In order to compensate for the higher standard deviation, the fund needs to generate a higher return to maintain a higher Sharpe ratio. In simple terms, it shows how much additional return an investor earns by taking additional risk. Intuitively, it can be inferred that the Sharpe ratio of a risk-free asset is zero. Find us on Social Media and stay connected: Facebook Page - https://www.facebook.com/InvestYadnya Facebook Group - https://goo.gl/y57Qcr Twitter - https://www.twitter.com/InvestYadnya
The Sharpe Ratio
 
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This video shows how to calculate the Sharpe Ratio. The Sharpe Ratio measures the reward (excess return) to risk (volatility) of a portfolio. This allows investors to rank portfolios. The Sharpe Ratio is calculated as follows: Sharpe Ratio = Excess Return of Portfolio / Volatility of Portfolio The excess return of a portfolio is the expected return of a portfolio minus the risk-free rate. The Sharpe Ratio is also the number of standard deviations by which the portfolio's return must fall to underperform the risk-free investment. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like Edspira on Facebook, visit https://www.facebook.com/Edspira To sign up for the newsletter, visit http://Edspira.com/register-for-newsletter Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin To follow Michael on Facebook, visit https://www.facebook.com/Prof.Michael.McLaughlin
Views: 8433 Edspira
Retained Earnings & Investment Ratios | Financial Accounting | CPA Exam FAR | Chp 11 p 3
 
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P/E ratio, pe ratio, stock options, dividend yield, financial ratio, Ratio analysis, book value per share, return on stockholders equity, return on equity, payout ratio, retention ratio, financial statement analysis, profitability ratio, long term solvency ratio, cash dividend, property dividend, liquidating dividend, stock dividend, small stock dividend, large stock dividend, cpa exam
Sharpe Ratio Explained  -  Investment strategies
 
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Risk-adjusted return is more important than absolute return. Let's talk about the Sharpe Ratio. Take control of your financial future ! Visit my website: http://volatilitytradingstrategies.com/ Claim your FREE 2 Week Trial: https://www.volatilitytradingstrategies.com/subscribe Enjoy my Blog: https://www.volatilitytradingstrategies.com/blog Twitter: https://twitter.com/VolatilityVIX ...
Views: 10900 Money Talk
Reasons for using Return on Investment (ROI) and Residual Income (RI) - ACCA PM Lecture
 
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Reasons for using Return on Investment (ROI) and Residual Income (RI) - ACCA Performance Management (PM) *** Complete list of free ACCA lectures is available on OpenTuition.com https://opentuition.com/acca/pm/ *** Free lectures for the ACCA Performance Management (PM) Exam To benefit from this lecture, visit opentuition.com/acca to download the notes used in the lecture and access ALL free resources: ACCA lectures, tests and Ask the ACCA Tutor Forums Please go to opentuition to post questions to ACCA Tutor, we do not provide support on youtube.
Views: 2086 OpenTuition
How Is Investment Risk Measured?
 
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How to correctly measure investment risk in finance is an important consideration. However, there are many ways to measure risk and most professionals don't make it any easier by using industry jargon. In this video you'll learn how to decipher the various names for risk, what they mean for your portfolio, and several lesser used, but very robust risk measures. We'll cover: Volatility and Standard Deviation Downside Volatility and Modified Standard Deviation Max Drawdown and Max Drawdown Sum The Sharpe Ratio The Sortino Ratio http://RealizeYourRetirement.com
The Sharpe Ratio  -  Risk Adjusted Return Series  -  Part 1
 
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In part 1 of this risk-adjusted return series I will introduce the Sharpe Ratio and why it's important to view investment performance in terms of risk Take control of your financial future ! Visit my website: http://volatilitytradingstrategies.com/ Claim your FREE 2 Week Trial: https://www.volatilitytradingstrategies.com/subscribe Enjoy my Blog: https://www.volatilitytradingstrategies.com/blog Twitter: https://twitter.com/VolatilityVIX ...
Views: 10721 Money Talk
Ratio Analysis - Gearing
 
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This revision video explains the concept of gearing and illustrates how the main gearing ratios are calculated and interpreted.
Views: 71915 tutor2u
Ratio Analysis: Return on Capital Employed (ROCE)
 
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This short revision video introduces the concept of Return on Capital Employed.
Views: 85824 tutor2u
Return on Investment (ROI)
 
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What is ROI and how come everyone talks about it all the time? How is simple ROI calculated? What is it used for in business? Why should I understand the concept if I run a business or sell a product?
Views: 36432 Quatere
What is Alpha and Beta Risk? Alpha vs Beta as Investment Risk Ratios | Investing for Beginners
 
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Alpha and beta are both risk ratios that investors use as a tool to calculate, compare and predict returns. You are most likely to see alpha and beta referenced with mutual funds. Both measurements utilize benchmark indexes, such as the BSE Sensex, and compare them against the individual security to highlight a particular performance tendency. Alpha is a measure of an fund's performance compared to a benchmark. It's a mathematical estimate of the return, based usually on the growth of earnings per share. Beta, on the other hand, is based on the volatility—extreme ups and downs in prices or trading—of the stock or fund, something not measured by alpha. But beta, too, is compared to a benchmark. To understand in detail, please watch the video Find us on Social Media and stay connected: Facebook Page - https://www.facebook.com/InvestYadnya Facebook Group - https://goo.gl/y57Qcr Twitter - https://www.twitter.com/InvestYadnya
How to Calculate ROI (Return on Investment)
 
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Watch more How to Start a Business videos: http://www.howcast.com/videos/437106-How-to-Calculate-ROI-Return-on-Investment Return on investment, or ROI, is the overall profit made on an investment expressed as a percentage of the amount invested -- one of the most important gauges of business success. Learn how to figure out your ROI. Step 1: Determine net profit Determine the company's net profit, also known as net earnings. Tip Make sure not to confuse net profit with gross revenue. Step 2: Calculate total investment Calculate the total investment, which can be found by adding total debt to total equity. Step 3: Multiply by 100 Divide the net profit by the total investment and multiply by 100 to find the basic return on investment. If the net profit is $100,000 and the total invested is $300,000, then the return on investment would be 33 percent. Step 4: Compute stock ROI Compute the return on stock investments with a variation of the basic formula. Step 5: Find the value Imagine you invest $5,000 in a company. One year later, the stock's value has risen to $5,200 and you earn $100 in dividends. Use the new formula to calculate your ROI at 6 percent. Did You Know? In 1919, the DuPont company developed their own ROI formula, known as the DuPont Formula.
Views: 44325 Howcast
Residual Income | Managerial Accounting | CMA Exam | Ch 11 P 3
 
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Residual income, common fixed cost, Return on investment, ROI, segment margin, traceable fixed cost, decentralization, cost center, profit center, investment center,Present value of single amount, present value of annuity, ordinary annuity, annuity due, future value of annuity, future value of annuity, return on investment, net present value, NPV, internal rate of return, IRR, payback period, cost of capital, capital budgeting, simple rate of return, Ratio analysis, book value per share, return on stockholders equity, return on equity, payout ratio, retention ratio, financial statement analysis, profitability ratio, long term solvency ratio,
How to Calculate NPV, IRR & ROI in Excel || Net Present Value  || Internal Rate of Return
 
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"Try my "Hands-on Python for Finance" course on Udemy free for the first 100 people with code: HPFF0975 https://www.udemy.com/hands-on-python-for-finance/ " http://alphabench.com/data/excel-npv-irr-tutorial.html Tutorial demonstrating how to calculate NPV, IRR, and ROI for an investment. Demonstrates manual calculation of present values as well as the use of NPV and IRR functions in Excel. The spreadsheet used can be downloaded at: http://alphabench.com/data/NPV-IRR_STR.xlsx Capital Budgeting includes the analysis of various projects with financial measurements such as Net Present Value (NPV), Internal Rate of Return (IRR) and Return on Investment (ROI). This video discusses all of these concepts briefly while demonstrating the calculation of them using Excel. Excel Functions: NPV IRR
Views: 63869 Matt Macarty
Session 12 (Undergraduate): Show me the money (Measuring Investment Returns)
 
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Today's class represented a transition from hurdle rates to measuring returns. We started by completing the last pieces of the cost of capital puzzle: coming up with market values for equity (easy for a publicly traded company) and debt (more difficult). We then began our discussion of returns by emphasizing that the bottom line in corporate finance is cash flows, not earnings, that we care about when those cash flows occur and that we try to bring in all side costs and benefits into those cash flows. Defining investments broadly to include everything from acquisitions to big infrastructure investments to changing inventory policy, we set the table for investment analysis by setting up the Rio Disney investment. Slides: http://www.stern.nyu.edu/~adamodar/podcasts/cfUGspr16/Session12.pdf Post class test: http://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session12atest.pdf Post class test solution: http://www.stern.nyu.edu/~adamodar/pdfiles/cfovhds/postclass/session12asoln.pdf
Views: 2447 Aswath Damodaran
How to calculate a Return on Investment (ROI)
 
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When you make an investment, you expect something in return, right? Your return on investment—your ROI—is an important number and a key motivating factor in your financial planning. Determining and monitoring your ROI will keep your portfolio fine-tuned and at peak performance. Watch this video to find out: How to calculate a ROI; Two sources of investment returns; Five key measures of a return. There’s some math in this video, but the calculations can prove invaluable in determining what you’re getting back from your investments. Plus, there are plenty of free online financial calculators to help you with the numbers.
Managerial Accounting 11.4:  Using Return on Investment (ROI) to Evaluate Performance
 
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This video describes how to use return on investment (ROI) to evaluate investment centers.
Views: 1501 KurtHeisinger
KPI example to measure the return on investment made on resources employed
 
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http://www.winningkpi.com/to-measure-the-return-on-investment-made-on-resources-employed.htm | This indicator is for measuring of Investment process, quality of investment and desired outcome of the investment made in facility, machine etc
Views: 7096 BSC Designer
Calculating your return-on-assets ratio
 
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Measure how well your assets are working to turn a profit using the return-on-assets ratio. - Return-on-assets a good measure of profitability - Compares net income to your overall assets - Revenues include = crop receipts, livestock receipts - Operating expenses = inputs like seed, feed, wages, rent etc.… - Total assets = current and long term assets like quota, machinery and land
Views: 1887 Farm Credit Canada
Return on Equity - Why Warren Buffet Loves ROE
 
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Return on Equity (ROE) is calculated by dividing shareholder equity and net income. ★☆★ Subscribe: ★☆★ https://goo.gl/qkRHDf Investing Basics Playlist https://goo.gl/ky7CJq Investing Books I like: The Intelligent Investor - https://amzn.to/2PVhfEL Common Stocks & Uncommon Profits - https://amzn.to/2DAV8h9 Understanding Options - https://amzn.to/2T9gFSp Little Book of Common Sense Investing - https://amzn.to/2DfFGG2 How to Value Exchange-Traded Funds - https://amzn.to/2PWSkRg A Great Book on Building Wealth - https://amzn.to/2T8AKZ1 Dale Carnegie - https://amzn.to/2DDAk8w Effective Speaking - https://amzn.to/2DBncAT Equipment I Use: Microphone - https://amzn.to/2T7JxL6 Video Editing Software - https://amzn.to/2RQM1vE Thumbnail Editing Software - https://amzn.to/2qIUAgP Laptop - https://amzn.to/2T4xA8Z DISCLAIMER: I am not a financial advisor. These videos are for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility. It is crucial that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional prior to making an investment. #LearnToInvest #StocksToWatch #StockMarket
Views: 3462 Learn to Invest
Return on Investment (ROI) for Performance Evaluation || Managerial Accounting || Md Azim
 
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Return on Investment (ROI) for Performance Evaluation can be learnt from this video. Please SUBSCRIBE if you enjoyed.
Views: 209 Md. Azim
Investor Ratios - ACCA
 
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http://accountingcollege.co.uk/ Ratios are a topic that comes up repeatedly in ACCA exams. This video provides students with revision theory for Earnings Per Share, Dividend Per Share, Dividend Yield, Dividend Cover, Price Earnings Ratio, Earnings Yield, Return on Equity.
Views: 4941 AC Training
How to Calculate Return on Investment (ROI) & Cash-on-Cash Return (CCR) in the Cashflow Board Game
 
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How to Calculate ROI (Return on Investment) or Cash-on-Cash Return (CCR) in the Cashflow Board Game 101 & 202 by Robert Kiyosaki In this video I first explain the different meanings of CCR and ROI, then give examples using opportunity cards from the cash flow 101 & 202 board game to show how to calculate each metric for an investment. Both metrics are measures of the profitability of an investment and help in determining how hard one's money is working for them. It is important to always ask how an individual is calculating the CCR or ROI to see whether they are using the correct formula and know what they are talking about. ROI is not as clear cut as CCR which is why one should always check how the ROI of an investment is being calculated. Cash on Cash Return (CCR) Investopedia Definition - http://www.investopedia.com/terms/c/cashoncashreturn.asp#axzz1zyg14IsQ Return on Investment (ROI) Investopedia Definition - http://www.investopedia.com/terms/r/returnoninvestment.asp/#axzz1zyg14IsQ How to Calculate ROI (Return on Investment) or Cash-on-Cash Return (CCR) in the Cashflow Board Game 101 & 202 by Robert Kiyosaki Connect with me on LinkedIn ("friend"): ​ http://www.linkedin.com/profile/view?id=41316581&locale=en_­US&trk=tab_pro Check out my website: www.groundedcapital.com Subscribe to my Newsletter here: http://eepurl.com/x9dD1
Views: 2368 Marc Pfeiffer
What Is A Return On Investment?
 
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There are several ways to determine roi, but the most frequently used method is divide return on investment a crucial analytical tool by both businesses and investors. Any return is from the net profit business makes formula for on investment, sometimes referred to as roi or rate of return, measures percentage a particular investment. Profit includes income and capital gains. Roi calculations allows you to compare the results of how much profit you've made from your ads compared spent on those. Roi is used to one of the main reasons new investors lose money because they chase after unrealistic rates return on their investments, whether are buying stocks, 9 sep 2016 assets ratio, or roi, a profitability measure that evaluates business investment by dividing net profit worth 12 aug definition roi investment, how calculate it, and use it in your home marketing formula for calculating dependent you track revenue, profits expenses. Roi is usually expressed as a percentage and typically used for personal financial decisions, to compare company's profitability or the efficiency of different investments return on investment, roi, most common ratio. Marketing roi formula return on investment calculator. What is return on investment (roi)? Definition and meaning roi explain defined calculated compared. The return on investment ratio explained the balance. Risk is the possibility that your purchase price, loan terms, appreciation rate, taxes, expenses and other factors must be considered when you evaluate a real estate investmentReturn on investment (roi) entrepreneur. The concepts of return on investment and risk what is the my real estate investment? . Return on investment (roi) definition what is return shopify. It compares the magnitude and timing of gains from definition return on investment (roi) earning power assets measured as ratio net income (profit less depreciation) to average capital roi profitability metric for cash flow results defined, explained, examples calculated, compared npv irr payback period investment, roi, is money an investor in a business earns injection financial. Return on investment roi investopediareturn (roi) definition & example return entrepreneur. A high roi means the investment's gains compare favorably to its cost return on investment (roi) measures gain or loss generated an relative amount of money invested. A performance measure used to evaluate the efficiency of an investment or compare a number different investments return on. Here are calculators and a demo this roi calculator (return on investment) calculates an annualized rate of return using exact dates. Return on investment (roi) entrepreneur return roi investopedia terms r returnoninvestment. Googleusercontent search. Return on investment (roi) calculator financial calculators. Return on investment (roi) entrepreneur. In this lesson, you'll learn the basic formula, a variant return on investment or roi is profitability ratio that calculates profits of an as
Views: 1 Lanora Hurn Tipz
Return on Assets (ROA)
 
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Return on Assets (ROA) is a type of return on investment (ROI) that measures the profitability of a business in relation to its total assets. Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/finance/return-on-assets-roa-formula/
CMA P1C 3  Performance measures   08   Financial measures in investment centres   Return on Investme
 
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Financial measures in investment centres-ROI CMA Multiple Choice Questions and Answers Financial measures in investment centres Financial Measure are: Return on investment (ROI) Residual income (RI) Economic value added (EVA) ROI Return on investment (ROI) Used to measure the performance of an investment centre ROI Improving ROI Increase return on sales—increase selling price or sales revenue, or decrease expenses Increase investment turnover by increasing sales revenue or reducing invested capital Actions that are taken with the sole purpose of making these ratios more favourable may have adverse effects on performance in future years Advantage ROI Encourages managers to focus on both the profits and the assets required to generate those profits Can be used to evaluate the relative performance of investment centres Limitations of ROI Encourages managers to focus on short-term financial performance, at the expense of long-term viability and competitiveness Encourages managers to defer asset replacement Discourages managers from investing in projects which are acceptable from the organisation’s point of view, but decrease the investment centre’s ROI Problems with ROI Invested capital is typically based on historical costs Fully depreciated assets lead to a low invested capital number resulting in high ROI Makes comparison of investment centers using ROI difficult Managers may put off purchase of new equipment May lead to underinvestment Possible alternative definitions of cost: Current Cost Gross Value of Fixed Assets Net Book Value of Fixed Assets Problems of Overinvestment and Underinvestment Evaluation using Profit can lead to overinvestment Managers may be motivated to make investments that earn a return that is less than the cost of capital Evaluation using ROI can lead to underinvestment Managers may not take on projects that have a low ROI just to increase profit if they are evaluated in terms of the return they earn Behavioral issues of ROI Use ROI as one of a series of performance measures that focus on both short-term and long-term performance Consider alternative ways of measuring invested capital to minimise dysfunctional decisions Use alternative financial measures, such as residual income or economic value added Decision Making
Views: 46 VATUAE Jayakumar
Intro to Hassle-Free Cashflow Investing PART 8 -Calculating ROI, leverage ratio, arbitrage spread
 
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Part 8 Calculating ROI using leverage ratio and arbitrage spread. Learn more and find turnkey real estate investments at http://www.hasslefreecashflowinvesting.com/ There is a free eBook companion to this video series. Download your free eBook by visiting http://www.hasslefreecashflowinvesting.com/investor-education/cashflow-investing-ebooks/ Also visit our website to view our current real estate investment opportunities.
Finance: Liquidity Ratios Explained
 
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Learn more about liquidity ratios here on the tutor2u website: https://www.tutor2u.net/business/reference?q=liquidity+ratio In this short revision video, Jim Riley from tutor2u Business introduces the concept of liquidity ratios and explains how to calculate and interpret the two main ratios: the current ratio and acid-test ratio.
Views: 131684 tutor2u
Measuring Your Return on Investment
 
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Once you have done all the right things in prospecting leads, it is important to circle back around and measure your return on investment. This video explains how that can be done, using Eventective leads as an example.
Views: 400 eventective
Return on Investment | Responsibility Centers and Segments US CMA Part 1| US CMA course
 
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ROI is a popular measure of profitability combining costs, revenues and investments May be used to evaluate the performance of a division, an investment centre or the organization as a whole Measures the efficiency of the manager in utilising resources to generate returns An organization can compare the ROI with its cost of capital (or shareholder required rate of return) to determine whether the business segment should be continued, sold off or discontinued. Return on Investment (ROI) or Accounting Rate of Return = Income of a Business Unit / Investment of a Business Unit WhatsApp Now: 8692900017 https://meraskill.com/cma
Views: 725 Mera Skill