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Return On Investment
Return on investment (ROI) or return on costs (ROC) is the ratio between net income (over a period) and investment (costs resulting from an investment of some resources at a point in time). A high ROI means the investment's gains compare favorably to its cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments.Return On Investment – ROI , Investopedia as accessed 8 January 2013 In economic terms, it is one way of relating profits to capital invested. Purpose In business, ...[...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Net Income
In business and Accountancy, accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and Amortization (accounting), amortization, interest, and taxes, and other expenses for an accounting period. It is computed as the residual of all revenues and gains less all expenses and losses for the period,Weil, Schipper, Francis. (2009) Financial Accounting: An Introduction to Concepts, Methods, and Uses. Cengage Learning and has also been defined as the net increase in Equity (finance), shareholders' equity that results from a company's operations.Weil, Schipper, Francis. (2010) Financial Accounting. Cengage Learning. It is different from gross income, which only deducts the cost of goods sold from revenue. For Household, households and individuals, net income refers to the (gross) income minus taxes and other deductions (e.g. mandatory pension cont ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Marketing Accountability Standards Board (MASB)
The Marketing Accountability Standards Board (MASB), authorized by the Marketing Accountability Foundation (MAF),MASB''Marketing Accountability Foundation (MAF)''.[cited 8 December 2010] is an independent, private sector, self-governing organization composed of academics and practitioners. Its primary goal is to establish marketing measurement and accountability standards that drive continuous improvement in financial performance and to provide guidance and education to users of performance and financial information.''MASB Mission''. [cited 8 December 2010] History The MASB was established in 2007 following recommendations from The Boardroom Project (2004–2007).[...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Return On Capital Employed
Return on capital employed is an accounting ratio used in finance, valuation, and accounting. It is a useful measure for comparing the relative profitability of companies after taking into account the amount of capital used.Fernandes, Nuno. Finance for Executives: A Practical Guide for Managers. NPV Publishing, 2014, Chapter 3. The formula : (Expressed as a %) It is similar to return on assets (ROA), but takes into account sources of financing. Capital employed In the denominator we have net assets or capital employed instead of total assets (which is the case of Return on Assets). Capital Employed has many definitions. In general it is the capital investment necessary for a business to function. It is commonly represented as total assets less current liabilities (or fixed assets plus working capital requirement). ROCE uses the reported (period end) capital numbers; if one instead uses the average of the opening and closing capital for the period, one obtains return on aver ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Return On Brand
The return on brand (ROB) is an indicator used to measure brand management performance. It is an indicator of the effectiveness of brand use in terms of generating net income, a special case of return on assets. ROB is calculated as the ratio of net income to brand value: : \mathrm = \frac Usage Return on brand can be used in multi-criteria models for assessing the effectiveness of branding, as well as intellectual capital (since the brand is a component of relational capital). It is believed that if the brand value of the company increases, its net profit should also increase, otherwise the value of ROB will decrease, which indicates a decrease in the effectiveness of brand management in terms of creating net profit. At the same time, if the brand value falls, and this does not lead to a decrease in the net profit of the enterprise, the ROB value increases, which indicates a relative increase in the brand management efficiency. The change in brand value itself, although it ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Return On Assets
The return on assets (ROA) shows the percentage of how profitable a company's assets are in generating revenue. ROA can be computed as below: :\mathrm = \frac The phrase return on average assets (ROAA) is also used, to emphasize that average assets are used in the above formula. This number tells you what the company can do with what it has, ''i.e.'' how many dollars of earnings they derive from each dollar of assets they control. It's a useful number for comparing competing companies in the same industry. The number will vary widely across different industries. Return on assets gives an indication of the capital intensity of the company, which will depend on the industry; companies that require large initial investments will generally have lower return on assets. ROAs over 5% are generally considered good. Usage Return on assets is one of the elements used in financial analysis using the Du Pont Identity. See also *Return on equity (ROE) *List of business and finance abbre ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rate Of Return
In finance, return is a profit on an investment. It comprises any change in value of the investment, and/or cash flows (or securities, or other investments) which the investor receives from that investment over a specified time period, such as interest payments, coupons, cash dividends and stock dividends. It may be measured either in absolute terms (e.g., dollars) or as a percentage of the amount invested. The latter is also called the holding period return. A loss instead of a profit is described as a '' negative return'', assuming the amount invested is greater than zero. To compare returns over time periods of different lengths on an equal basis, it is useful to convert each return into a return over a period of time of a standard length. The result of the conversion is called the rate of return. Typically, the period of time is a year, in which case the rate of return is also called the annualized return, and the conversion process, described below, is called ''annualiz ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rate Of Profit
In economics and finance, the profit rate is the relative profitability of an investment project, a capitalist enterprise or a whole capitalist economy. It is similar to the concept of rate of return on investment. Historical cost ''vs.'' market value The rate of profit depends on the definition of ''capital invested''. Two measurements of the value of capital exist: capital at historical cost and capital at market value. Historical cost is the original cost of an asset at the time of purchase or payment. Market value is the re-sale value, replacement value, or value in present or alternative use. To compute the rate of profit, replacement cost of capital assets must be used to define the capital cost. Assets such as machinery cannot be replaced at their historical cost, but must be purchased at the current market value. When inflation occurs, historical cost would not take account of rising prices of equipment. The rate of profit would be overestimated, using lower historic ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Price–earnings Ratio
The price–earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company's share (stock) price to the company's earnings per share. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued. :\text=\frac As an example, if share A is trading at and the earnings per share for the most recent 12-month period is , then share A has a P/E ratio of = years. Put another way, the purchaser of the share is expecting 8 years to recoup the share price. Companies with losses (negative earnings) or no profit have an undefined P/E ratio (usually shown as "not applicable" or " N/A"); sometimes, however, a negative P/E ratio may be shown. There is a general consensus among most investors that a P/E ratio of around 10 to 20 is 'fairly valued' but this is sector-dependent. Versions There are multiple versions of the P/E ratio, depending on whether earnings are projected or realized, and the type of earnings. * "Trailing P/E" uses ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Marketing Plan
A marketing plan is a plan created to accomplish specific marketing objectives, outlining a company's advertising and marketing efforts for a given period, describing the current marketing position of a business, and discussing the target market and marketing mix to be used to achieve marketing goals. It is often created together by marketing managers, product marketing managers, product managers, and sales teams. A marketing plan comprises part of an overall business plan. A comprehensive marketing plan may contains historical data, future predictions, methods or strategies to achieve marketing objectives, and analyses of the strengths and weaknesses of a company, its organization and its products. Objectives Acquiring marketing share, increasing customer awareness, and building a favorable business image are some of the objectives that can be related to marketing planning. The marketing plan also helps layout the necessary budget and resources needed to achieve the goals st ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Internal Rate Of Return
Internal rate of return (IRR) is a method of calculating an investment's rate of return. The term ''internal'' refers to the fact that the calculation excludes external factors, such as the risk-free rate, inflation, the cost of capital, or financial risk. The method may be applied either ex-post or ex-ante. Applied ex-ante, the IRR is an estimate of a future annual rate of return. Applied ex-post, it measures the actual achieved investment return of a historical investment. It is also called the discounted cash flow rate of return (DCFROR)Project Economics and Decision Analysis, Volume I: Deterministic Models, M.A.Main, Page 269 or yield rate. Definition (IRR) The IRR of an investment or project is the "annualized effective compounded return rate" or rate of return that sets the net present value (NPV) of all cash flows (both positive and negative) from the investment equal to zero. Equivalently, it is the interest rate at which the net present value of the future cash fl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Energy Return On Energy Invested
In energy economics and ecological energetics, energy return on investment (EROI), also sometimes called energy returned on energy invested (ERoEI), is the ratio of the amount of usable energy (the ''exergy'') delivered from a particular energy resource to the amount of exergy used to obtain that energy resource. Arithmetically the EROI can be defined as: : EROI = \frac. When the EROI of a source of energy is less than or equal to one, that energy source becomes a net "energy sink", and can no longer be used as a source of energy. A related measure, called energy stored on energy invested (ESOEI), is used to analyse storage systems. To be considered viable as a prominent fuel or energy source a fuel or energy must have an EROI ratio of at least 3:1. History The energy analysis field of study is credited with being popularized by Charles A. S. Hall, a Systems ecology and biophysical economics professor at the State University of New York. Hall applied the biological metho ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bang For The Buck
"Bang for the buck" is an idiom meaning the worth of one's money or exertion. The phrase originated from the slang usage of the words "bang" which means "excitement" and "buck" which means "money". Variations of the term include "bang for your buck," "bang for one's buck," "more bang for the buck," "bigger bang for the buck," and mixings of these. "More bang for the buck" was preceded by "more bounce to the ounce", an advertising slogan used in 1950 to market the carbonated soft drink Pepsi. The phrase "bigger bang for the buck" was notably used by U.S. President Dwight D. Eisenhower's Secretary of Defense, Charles Erwin Wilson, in 1954. He used it to describe the New Look policy of depending on nuclear weapons, rather than a large regular army, to keep the Soviet Union in check. Today, the phrase is used to mean a greater worth for the money used. History and usage William Safire discussed "bang for the buck" in his 1968 book, ''New Language of Politics''. Safire stated t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
