You literally hear the term "Return On Investment" or "ROI" all the time whenever someone is analyzing an investment... but what does it actually mean? Through this video, I've provided not just a definition of the ROI but also a detailed ROI explanation, including examples as well as the return on investment formula for your calculation needs. As you'll be able to find out, just like any other metric, the return on investment has its limitations. For example, the ROI doesn't factor in the time dimension. In other words, an ROI of x% might be great if you only had to wait three years but if you had to wait ten times more... not so much :) All in all, the return on investment is definitely a tool you cannot afford not to include in your knowledge bag and it can be ridiculously useful, as long as you always understand what and why you're measuring :) To support the channel, give me a minute (see what I did there?) of your time by visiting OneMinuteEconomics.com and reading my message. Bitcoin donations can be sent to 1AFYgM8Cmiiu5HjcXaP5aS1fEBJ5n3VDck and PayPal donations to [email protected], any and all support is greatly appreciated! Oh and I've also started playing around with Patreon, my link is: https://www.patreon.com/oneminuteeconomics Interested in reading a good book? My first book, Wealth Management 2.0 (through which I do my best to help people manage their wealth properly, whether we're talking about someone who has a huge amount of money at his disposal or someone who is still living paycheck to paycheck), can be bought using the links below: Amazon - https://www.amazon.com/Wealth-Management-2-0-Financial-Professionals-ebook/dp/B01I1WA2BK Barnes & Noble - http://www.barnesandnoble.com/w/wealth-management-20-andrei-polgar/1124435282?ean=2940153328942 iBooks (Apple) - https://itun.es/us/wYSveb.l Kobo - https://store.kobobooks.com/en-us/ebook/wealth-management-2-0 My second book, the Wall Street Journal and USA Today bestseller The Age of Anomaly (through which I help people prepare for financial calamities and become more financially resilient in general), can be bought using the links below. Amazon - https://www.amazon.com/Age-Anomaly-Spotting-Financial-Uncertainty-ebook/dp/B078SYL5YS Barnes & Noble - https://www.barnesandnoble.com/w/the-age-of-anomaly-andrei-polgar/1127084693?ean=2940155383970 iBooks (Apple) - https://itunes.apple.com/us/book/age-anomaly-spotting-financial-storms-in-sea-uncertainty/id1331704265 Kobo - https://www.kobo.com/ww/en/ebook/the-age-of-anomaly-spotting-financial-storms-in-a-sea-of-uncertainty Last but not least, if you'd like to follow me on social media, use one of the links below: https://www.facebook.com/oneminuteeconomics https://twitter.com/andreipolgar https://ro.linkedin.com/in/andrei-polgar-9a11a561
Views: 1631 One Minute Economics
Return on Investment (ROI) Formula and Use What is marketing ROI? To see thereturn on investmentyou are getting for the money you spend on the marketing campaign. In simplest terms ROI is calculated as: (Sales Growth – Marketing Investment) / Marketing Investment = ROI ROI is typically expressed as a percentage. This is great for businesses who sell one-time products or services, but what if your business model is based on recurring sales. In this case, you might be interested in using the Customer Lifetime Value (CLV) formula instead. (Customer Lifetime Value - Marketing Investment Per Acquisition) / Marketing Investment Per Acquisition = ROI In order to make the most of your Marketing campaigns and to get the most accurate calculation you need to measure and compare your sales and tracking everything you can that drives your business. Use Google Analytics. Google Analytics is a powerful tool that helps you calculate ROI and also that it gives you information that will help you to increase your ROI. After calculating your ROI, if you find unsatisfying results, don’t worry. The idea of calculating ROI is to have an idea of how things are going, you can target the problem and maximize your ROI.
Views: 1035 Weekly Marketing Tips
Great introductory video on how to calculate the return on marketing investment (ROMI) metric.
Views: 4290 MktgStudyGuide
Return On Investment (ROI) is a term very commonly used to gauge the effectiveness or Impact of any intervention in the world of business. This video attempts to provide a basic overview of the term and clarify it with some examples. Please like & share the video and subscribe to this channel to express support. I intend to dedicate time and resources to improve the quality & presentation of future content. Music: http://www.bensound.com
Views: 15254 Mister Simplify
How to calculate ROI in Excel using formula. dollar return on investment excel spreadsheet, how to calculate roi in excel percentage Excel File: http://www.uploadkr.com/users/wajahat/ROI_20.xlsx If you have any question please feel free to ask. Don't forget to SUBSCRIBE Source: investopedia.com How to Calculate ROI ROI Calculation in Excel ROI Calculation - Made easy How to calculate Return on Investment roi calculation in excel how to calculate roi in excel how to calculate return on investment in excel calculating return on investment in excel how to calculate training roi in excel measure roi in excel
Views: 42368 InnoRative
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: 44310 Howcast
To spend two days with me at the Property Investors Crash Course, claim your FREE ticket at: https://www.property-investors.co.uk A lot of property investors struggle to work out the return on investment when purchasing a property. In this video I explain exactly how to do calculate the ROI to ensure you're generating profit on the properties you buy. Share this video: https://youtu.be/P29R156tz78 Subscribe to this channel for more content: https://www.youtube.com/SamuelLeeds?sub_confirmation=1 How To Start Investing In Property: https://www.youtube.com/watch?v=fD72LIRCoRw&list=PL2pwVLNuxBo-6LAqip-DiNmNpDlmfxx9A How To Buy Property Below Market Value: https://www.youtube.com/watch?v=QsSE16fz7ws&index=3&list=PL2pwVLNuxBo9-mqWRERxqIkXpsXXnhzBP How To Buy A House with No Money Down: https://www.youtube.com/watch?v=8XoOaz1K1mo&index=3&list=PL2pwVLNuxBo8LdQHChi5Vdymq6oHgZz0t&t=0s How To Finance Property Deals: https://www.youtube.com/watch?v=3DIStoRbaFE&list=PL2pwVLNuxBo9mQlt-GMmjUHPgm5GRtjZe FOLLOW ME on social media: Facebook: https://www.facebook.com/groups/778613042238071 Instagram: https://www.instagram.com/leeds.samuel/ LinkedIn: https://www.linkedin.com/in/samuel-leeds-64660683 Podcast: https://www.youtube.com/channel/UChZcrWJ6gl1ct2jYPnZ556Q
Views: 9029 Samuel Leeds
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/
Views: 4406 Corporate Finance Institute
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: 3539 OpenTuition
http://www.ProfitableHospitality.com This calculator shows the 'payback' time and ROI for equipment and service investments. It takes into account the saving or profit increase expected and how long the equipment will last. Compare this to bank interest and new equipment can often be an excellent investment. Useful for justifying purchasing decisions! Examples shown for purchasing a new expresso machine, Point of Sale system and paying for a new Website. Just one of the hundreds of management and cost-control resources at http://www.ProfitableHospitality.com
Views: 37417 Profitable Hospitality
Levi shows the calculation he uses to determine the Return on Investment Percentage (ROI %) for a statement over a 1 year period. He shows examples of what information to look for off your individual statement and shows you how uses the Annual ROI to compare to other accounts and the stock markets. Return on Equity and Return on Investment are the same term (ROE and ROI) and are both usually presented in percentage % so that you can easily compare returns from multiple accounts. Levi's is not a finacial planner and is not offering investment advice. This is an opinion channel only and you are encouraged to seek professional finacial planning advice. Levi is a long term dividend investor living in Canada. He wants to help encourage people to understand the basics of investing to help make more informed choices when dealing with their long term wealth building strategy. He loves dividend stocks and invests in both the American and Canadian Stock markets. Levi's wealth has been build by following his personal 14 investment rules: https://youtu.be/_1NdEajx2zU
Views: 1298 Drawbridge Finance
Channel Sponsor: You're showering anyways, so why not buy handmade soap from a sponsor that supports the creation of my content. Use code "COOPER" at checkout and Get 10% off Tactical Soap mentioned at the end of the video here: http://bit.ly/2jQEZbz Become a Member: https://www.youtube.com/channel/UCuKqtwPO5ci5_KoZGbfl33g/join Let's do business together! What a great way to reach a solid responsive audience of men chasing excellence and building a better version of themselves. Send business/sponsorship inquiries to [email protected] ====================================================== HOW TO GET COACHING FROM RICHARD: Phone Coaching: https://clarity.fm/richardcooper Request a Video: https://www.reach.me/RichardCooper ====================================================== JOIN MY PRIVATE MENS COMMUNITY The absolute best way to connect with me, and 300+ men chasing excellence, is to join my private community for men. It's a monthly subscription for $10, and the exclusive content is commercial free, catered towards men living better lives, and will never be found publicly on my channel. You will get direct access to me and: 1) In depth private videos to help men master, self-care, money, biz and inter-sexual dynamics 2) Access a secret Facebook community of 250+ men working on themselves 3) Join private monthly live Q&A Google hangout sessions with me 4) 25% discount on my 1 on 1 coaching rate. Consider pledging and becoming a Patreon: https://www.patreon.com/EntrepreneursinCars Or all of the above perks can also be had on my website: http://entrepreneursincars.com/ ====================================================== EVENTS Join me at the 21 convention this fall in Orlando for a 4 day conference on becoming a better man, you can grab a ticket here: http://team.21university.com/78641/6171 ====================================================== CRYPTOCURRENCY Wallet I Use. Keep My Crypto Safe & Offline: http://amzn.to/2oBgSm8 Get $10 of free Bitcoin When You Buy $100 US ($130 CAN) of cryptocurrency : https://www.coinbase.com/join/5a205e65cac83400d1deb5c3 Canadian Crypto Exchange: https://www.quadrigacx.com/?ref=s6vzn9len8evgyma5f443sqs ====================================================== TIP JARS If you enjoy my content and would like to contribute to my channel, please consider leaving a tip, just click the link below BTC address: 1L1AUHgPeEWXr5AeG6eStRpHsa93FBSNuk PayPal: https://www.paypal.me/RichardCooperCA ====================================================== MUST READ BOOKS FOR ALL MEN Sex At Dawn: http://amzn.to/2pU1L4v The Rational Male: http://amzn.to/2i9dfjW Bachelor Pad Economics: http://amzn.to/2kNP7UG The Way of Men: http://amzn.to/2kLFB1p Mating in Captivity: http://amzn.to/2skraEV Tactical guide to Women: http://amzn.to/2evDpws ====================================================== FAQs That thing on my wall: https://www.youtube.com/watch?v=nD4cdcTquxY What I do for a living: https://www.youtube.com/watch?v=IAJDuCqEn50 ====================================================== © Richard Cooper - For all business inquires contact [email protected] This video is not to be reproduced without prior authorization. The original YouTube video may be distributed & embedded, if required.
Views: 18153 Entrepreneurs in Cars
What do I do? Full-time independent stock market analyst and researcher: https://sven-carlin-research-platform.teachable.com/p/stock-market-research-platform Check the comparative stock list table on my Stock market research platform under curriculum preview! I am also a book author: Modern Value Investing book: https://amzn.to/2lvfH3t More about me and some written reports at the Sven Carlin blog: https://svencarlin.com Stock market for modern value investors Facebook Group: https://www.facebook.com/groups/modernvalueinvesting/ It is all about the earnings yield, simply don't invest below a certain yield. The good things is that there are always opportunities out there, I'll show a few examples of how Warren Buffett is still buying at more than a 10% expected return on investment. Also be careful about the risk, I explain how.
Views: 24270 Invest with Sven Carlin, Ph.D.
Accounting rate of return or Accrual accounting rate of return Alternative method for calculating ARR or AARR Examples of using accounting rate of return
Views: 236 Brian Routh TheAccountingDr
Return On Investment ("ROI") The very simple calculation to figure out the return on investment, or, in short, "ROI", can be very powerful in regards to acting as a flashlight in the dark. Meaning, are you making good or bad decisions. Perhaps your decisions could be better? What is the return on investment? How is the return on investment calculated? Let me explain. Enjoy this Free Content? I'm confident you'd enjoy my premium training courses then: https://claytrader.com/training/ Hear real-life trading journeys from "normal" people: The Stock Trading Reality Podcast - https://claytrader.com/podcast/
Views: 646 ClayTrader
This video explains the concept of IRR (the internal rate of return) and illustrates how to calculate the IRR via an example. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira 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 Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 688011 Edspira
The basic formula for roi is net profit total investment 100 4 may 2017 an investor cannot evaluate any investment, whether it's a stock, bond, rental $2 grows to. Return on investment (roi) formula return readyratios. Return on investment definition, formula & example video return (roi) definition fyi roi a guide to calculating. What is return on investment (roi)? Definition and meaning how to calculate xerox. Environmental and social simple roi problems. Return on investment definition, formula & example video return (roi) definition. Rarely return on investment, or roi, is the most common profitability ratio. Roi formula return on investment calculator. Return on investment (roi) definition what is return shopify. How is the return on investment calculated for fmcg distributor (roi) entrepreneur. How to calculate a return on investment business insider. Return on investment or roi is a profitability ratio that calculates the profits of an as percentage original cost metric for cash flow results defined, explained, examples calculated, compared to npv irr payback period (roi) benefit investor resulting from some example, social (sroi) principles based method measuring extra financial value (i. Investing answers investinganswers return investment roi 1100 url? Q webcache. There are several ways to determine roi, but the most frequently used method is divide calculating return on investment provides a way for hr professionals demonstrate example, if introduces new health and safety program, 12 aug 2016 definition of roi or investment, how calculate it, you spend per month pay click (ppc). Following is an example of simple roi this year, abc company has produced earnings from the money investor in a business earns for injection financial if puts into clothing store and at end return on investment calculation as expained below. Returns on investment (finance) ps the example is for illustration purpose only. It calculates return on investment (roi) is performance measure used to evaluate the for example profitability of a company following formula can be marketing roi, tricky part determining what constitutes your return, and true. For more examples of the roi calculation, take a look at how to calculate video. Googleusercontent search. Return on investment (roi) measures the gain or loss generated an relative to amount of money invested. Here are a few examples to get the hang of calculating roigains and cost 400,000. What is roi? Roi 535,000 in the context of management accounting, return on investment (roi) a metric used to measure performance departments relative terms. 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, ratio profit loss made in fiscal year terms an investment shown increase decrease value during question. What is a return on investment in human resources? Roi definition and calcul
Views: 5 Marisol Moran Tipz
Alakh Asthana, of eClerx Services Ltd. asks Ludger how should KM practitioners display RoI (return on investment) on KM. Ludger explains that KM should be linked to business objectives. Even though clear RoI metrics are difficult, however, KM can be a contributor to areas like time to market, operational productivity, sales, innovation rate as so on. He further explains the above point in the video by giving BCG's example where KM is linked with three key business KPIs -- BCGs success in the market, value proof of clients i.e. quality of execution and operational productivity. Do look at the video for the complete explanation and examples.
Views: 371 eClerxServices
Determining the return on investment of social and impact investments / Determining social value and social capital: Including case studies and examples CSI Masterclass
Views: 38 Next Generation Consultants
Sign up for my FREE Passive Income Masterclass http://www.mikewolfmastery.co/masterclass if you want to learn my unique system to creating true passive income with real estate, reduce your financial risks, and remove the day-to-day hassles of being a landlord - Return On Investment In Real Estate Investing - Best Assets And Liabilities Examples In the market it is normal for us to think of the return on investment in real estate investing, so how would you know if it will give you the right return on your investments. This is mike wolf, the founder of mikewolfmastery.com. I’m off the coast of Dana Point near Orange County California cruising around with a couple of my friends on a rented 32-foot boat. It has been a beautiful day and we have seen lots of aquatic animals such as dolphins, whales, and sea lion. We have been talking about how tempting it is to have a day like this on a regular basis and some are already saying they will like to have a boat of their own. But for a number of reasons, I would rather rent a depreciating asset like this than to buy it. Firstly, it costs a lot to own a boat, coupled with the fact that you will still incur some expenses to maintain it. The cost of procuring a new boat is around 120 thousand dollars and with this amount, I will rather buy a piece of property or maybe two or three properties that will appreciate and generate more revenue. I can now use the money that comes from these appreciating assets to buy or rent myself the things that I need or want. Not only that assets like this are costly to maintain but also depreciate in value with the passage of time. So, if you are one of my students, you are probably going to seek me so that I can help you generate a lot of money and have better finances. But, if you have more money and you don’t know what to do with it, you can go ahead and buy yourself a boat. For instance, today am in California and next month I may want to be on a boat in Costa Rica or Thailand or anywhere in the world. So, I don’t need to buy a boat in every city or country that I may want to visit but I can still have a day like this or even a couple of times in a month at a cost that is not that expensive compared to the cost of ownership. Therefore, you need to put things in perspective and focus on the things that are going to make you money even when you are sleeping. Like I said earlier, you can spend your money anywhere you like that is up to you, but you don’t have to own every single thing you like especially if its value is going to depreciate with the passage of time. Always think about this anytime you are trying to figure out what sort of things you want to spend your money on and you can invest on my properties that are going to appreciate in value and fetch you more money. Thanks for tuning in again and if you enjoy this video and find value in it please subscribe to my channel. I look forward to seeing you soon. https://www.youtube.com/watch?v=TFGo_nQYkUA https://www.youtube.com/watch?v=4tqzg-ug2bk https://www.youtube.com/user/mikewolfmastery http://mikewolfmastery.com
Views: 205 Mike Wolf
Net Present Value and Internal Rate of Return, in short NPV and IRR. What is the purpose of the NPV and IRR methods of investment analysis, and how do you calculate NPV and IRR? The main idea of Net Present Value is very simple: time is money! The net present value (or “discounted cash flow”) method takes the time value of money into account, by: - Translating all future cash flows into today’s money - Adding up today’s investment and the present values of all future cash flows If the net present value of a project is positive, then it is worth pursuing, as it creates value for the company. IRR is the discount rate at which the net present value becomes 0. In other words, you solve for IRR by setting NPV at 0. Related videos: How to calculate NPV in Excel https://www.youtube.com/watch?v=jQ_NDQ2qVVA How to calculate IRR in Excel https://www.youtube.com/watch?v=L0JCg5TXudc 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 #financetraining in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Views: 58040 The Finance Storyteller
Be the first to check out our latest videos on Investopedia Video: http://www.investopedia.com/video/ Return on investment allows an investor to evaluate the performance of an investment and compare it to others in his or her portfolio. Find out how to calculate ROI and how to use to your advantage. For more on different ROI ratios, and how to use them -- check out; FYI On ROI: A Guide To Calculating Return On Investment http://www.investopedia.com/articles/basics/10/guide-to-calculating-roi.asp How To Calculate ROI For Real Estate Investments http://www.investopedia.com/articles/basics/11/calculate-roi-real-estate-investments.asp Find Quality Investments With ROIC http://www.investopedia.com/articles/fundamental/03/050603.asp CFA Level 1 Exam Prep: Financial Ratios - Return On Investment Ratios http://www.investopedia.com/exam-guide/cfa-level-1/financial-ratios/return-investment-ratios.asp
Views: 164424 Investopedia
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
Description: How to calculate net present value (NPV) and internal rate of return (IRR) in excel with a simple example. Download the excel file here: http://www.codible.com/pages/38 Some good books on Excel and Finance: Financial Modeling - by Benninga: http://amzn.to/2tByGQ2 Principles of Finance with Excel - by Benninga: http://amzn.to/2uaCyo6
Views: 918387 Codible
OMG wow! Soooo easy I subscribed here http://www.youtube.com/subscription_center?add_user=mbabullshitdotcom for Internal Rate of Return or IRR. In advance of going deeper into this approach, we need to evaluate the definition of "Rate of Return" (with no "internal" yet). Rate of Return would be the "speed" you are going to earn back profit on an annual basis, every twelve months, endlessly, in contrast to an amount you in the beginning invest. With the intention that it can be compared to the invested bigger sum, this is written just like a percent (%). By way of example, if you invest 100 dollars, and you earn back 3 dollars per annum endlessly, then the "rate of return" is 3%. Trouble-free, is it not? But let us alter the situation somewhat. Suppose, on the same $100 investment previously mentioned, you will definitely make money for a couple of years... and not all in identical amounts in each year? And what if the money coming in will likely stop after a certain number of years? For instance, you are going to get $5 on your 1st year, possibly $8 on your 2nd year, $3 around the third year, and $95 during the fourth year (which could become a final year... so it's not ad infinitum). What is the rate of return now? As you can tell, on this most recent problem, it isn't really easy to find the percentage rate. This is because it's not as simple as in the initial case above for the reason that the annual cash flow is not just a standardizedsum (similar to the $3 in the initial situation above) and it's not without end. This percentage within this newest situation has become popularly known as Internal Rate of Return. Given that it is really not simple to get the percentage, we can easily declare it really is like "a hidden" percent... therefore the term "internal"... due to the reason that the word "internal" is similar to a formal way of expressing "hidden". How is the principle beneficial? If the IRR of your respective undertaking or business enterprise is less than your cost of debt or the total interest rate you would pay to your bank (in case you raise funds money coming from the bank to do the investment or plan), then it is a foul deal. Exactly why? Remember! Because if you will pay 3% to your bank to accomplish a venture or make an investment decision, and then it produces an IRR of only 2%, then you definitely lose 1%. Then again, when your IRR or Internal Rate of Return is above the percentage at which one would borrow from the bank to cover an investment or task, then it is a fine deal, as a result of the helpful "spread" in between your rate of return and cost of debt. Similarly, in case your IRR is the same thing as the interest one would pay to your bank, then you're break-even. This, in summary, is really a simple clarification of IRR. Note that in more difficult problems, you might weigh up your internal rate of return not simply to your cost of debt, but to you cost of equity or weighted average cost of capital or WACC instead. http://www.youtube.com/watch?v=KKqzSGMz9Sk what is irr, the internal rate of return, what is internal rate of return, irr, internal rate of return, khan academy, investopedia
Views: 551828 MBAbullshitDotCom
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
Views: 115214 Mergers & Inquisitions / Breaking Into Wall Street
Learn how to analyze a rental property with the unique "four square" method and make sure your next rental property investment is a cash cow! In this video from BiggerPockets.com, Brandon Turner (author of The Book on Rental Property Investing and co-host of the BiggerPockets Podcast) shares with you the step by step method for determining the monthly cash flow and cash on cash return for any rental property investment. Calculating the numbers on a rental property doesn't need to be difficult - and this video proves it.
Views: 1316414 BiggerPockets
Two specific examples of how PR can deliver significant return on investment. We're running a fantastic recruitment marketing masterclass to teach you more great tips on achieving significant ROI from recruitment PR and marketing, book now: https://www.eventbrite.co.uk/e/recruitment-marketing-masterclass-tickets-33208738230?utm_sq=ffdyrj2ijv&aff=bluesky
Views: 31 BlueSky PR
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 If you're deciding to invest a lump-sum over a period of time you can quickly determine what the future value of that investment would be. In this brief video I'll show you how to calculate the future value of a lump-sum investment. Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy. Click here for a 14 day free trial: http://bit.ly/1Iervwb To view additional video lectures as well as other materials access the following links: 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
Views: 68451 Alanis Business Academy
Sports Coach UK and StreetGames worked collaboratively on an evaluative Social Return on Investment (SROI) project between 2014 and 2016. The study shares the findings from a Social Return on Investment (SROI) analysis to help understand the true value of developing coaches with the capability to deliver high quality coaching sessions and is based on the findings from five young leaders in Tyneside who undertook the Level 2 Doorstep Sport Coaching qualification; and went on to deliver high quality coaching sessions in their local community. For every £1 invested in these coaches in Tyneside, £3 worth of social value was returned! Coaching really can change lives!
Views: 3145 StreetGames
Project management topic on Capital budgeting techniques - NPV - Net Present Value, IRR - Internal Rate of Return, Payback Period, Profitability Index or Benefit Cost Ratio.
Views: 485524 pmtycoon
We talk about What is Investment vs Gambling? ROE Return on Equity, ROI Return on Investment, Inflation, Real rate of return vs Nominal Rate of Return and some examples how to find information on income statement and balance sheet
Views: 12933 TeacherPhilEnglish
This video explains what ROI is, and how to calculate ROI for training and development initiatives. The video will be useful to HR managers who are evaluating and justifying training budgets.
Views: 22860 u21global
Discover our straight-forward and easy to use formula for calculating the numbers on a prospective rental property purchase. Welcome to Hipster’s first how-to video! I’m going to show you how to run quick numbers on a rental property. You can use this easy and fast formula for any property you’re looking at. I'll be behind the scenes doing the calculations on my white board and calculator (yes, it really is that big!) to show you how it works. This is an actual rental property I'm using as an example, including the actual purchase price and numbers. (You have to love my handwriting!) You always want to verify the numbers you run before you buy any property (for example, with a property manager), but it helps to do your homework first. This particular house is in Indianapolis and gets $1,075 in rent. It was built in 2002. Super cute little house: three bedroom, two bath. But all we care about right now is the numbers… Want to know more about the latest deals? Subscribe to our Newsletter: http://goo.gl/41tmRK ----- Are you a responsible professional ages 30-49 and want to make smart investments? Have you thought about real estate investing but ruled it out because it sounded complicated or risky? Do you want to grow your money, but are worried about scams and ripoffs? Are you a cool person who I’d just enjoy saying “hi” to? If you answered "YES" to any of those questions, then we should talk. I help people just like you to find smart, safe, passive real estate investments so your money is working hard for you, even if you lack real estate investing knowledge. If you're cautious or nervous, then I can help you get educated on the best real estate investments possible and guide you towards getting that first investment property under your belt. When the passive income starts flowing, you'll be hooked and be ready for more properties, and I can introduce you to actual high quality deals and partners that I would, and do, actually invest in myself. I promise, I won’t refer you to anyone I haven’t personally bought through myself. (true story)
Views: 376336 Hipster Investments
An introduction to Sustainability Return on Investment, a powerful tool that improves ability to make investment decisions. Actual examples of how Sustainability Return on Investment has been applied are discussed, demonstrating the value of this methodology. AIChE Academy AIChE Academy brings a full array of education and training resources to chemical engineers and the companies they work for. You’ll find courses, webinars, conference presentations and more from AIChE, CCPS, SBE, IfS, and ISWS. You can search by topic, availability of CEUs and PDHs, delivery method, skill level—even location. Start learning today. http://www.aiche.org/academy
Views: 130 AIChE Academy
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
In this short video, I will give a simple definition with examples for the term ROI. Visit http://www.twitter.com/EverydayTrades for more free stock market tips and advice.
Views: 88 The Everyday Stock Trader
This algebra & precalculus video tutorial explains how to use the compound interest formula to solve investment word problems. This video contains plenty of examples and practice problems for you to work on. Here is a list of topics: 1. Compound Interest Explained - Formula & Equations 2. Compounded Monthly, Semi Annually, Quarterly, Daily, Weekly and Compounded Continuously 3. Compound Interest Word Problems - Investment, Mutual Funds, Savings Account, and Index Annuity 4. Logarithms - Solve for t 5. Compound Interest - Solve for r using e 6. Future Value vs Present Value - Math Problems
Views: 267172 The Organic Chemistry Tutor
This video explains the concept of Net Present Value and illustrates how to calculate the Net Present Value of a project via an example. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira 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 Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 574310 Edspira
Following on from his "3 ways to value a company" video, Tim introduces the first method called the 'net assets approach'. Along the way he explains how it works, how it helps investors, and also points out some of its pitfalls.
Views: 111453 MoneyWeek
Indigenous National Technology & Telecom Network (iNTTN) supplies Telecommunication and IT Solutions. We are committed to Social and Economic Development. Through sound principles and commitment to contributing to Higher Returns on Investment back to our Non-Profit Customers we believe this will result in Sustainable and Positive Change at Grass Roots Level.
Views: 4 iNTTN
Install our android app CARAJACLASSES to view lectures direct in your mobile - https://bit.ly/2S1oPM6 Join my Whatsapp Broadcast / Group to receive daily lectures on similar topics through this Whatsapp direct link https://wa.me/917736022001 by simply messaging YOUTUBE LECTURES Did you liked this video lecture? Then please check out the complete course related to this lecture, Banking Credit Analysis Process with 240+ Lectures, 17+ hours content available at discounted price (10% off)with life time validity and certificate of completion. Enrollment Link For Students Outside India: https://bit.ly/2wcpBMk Enrollment Link For Students From India: https://www.instamojo.com/caraja/banking-credit-analysis-process/?discount=inybcap68 Our website link : https://www.carajaclasses.com ---------------------------------------------------------------------------------------------------------------- BEST FOR CREDIT ANALYSIS THIS IS BEST LECTURE EXPLAINED IN SIMPLE METHOD WITH EXAMPLES FOR CREDIT PROFESSIONAL.Also it would def help on the job purpose as well.Would def recommend ------------------------------------------------------------------------------------------------------------------ Credit Analysis is the core process adopted by any Bank to understand, evaluate and appreciate about the Customers Identity, Integrity, Financial Position, - Repayment Capacity, Etc. Every Banker should be through with Credit Analysis Process because day in day out they have to deal with new customers and before sanctioning any new loans to them, Banker should have made detailed study of their customers. No Banker can raise to top unless he becomes conversant with Credit Analysis Process. Bank would generally throw employees on to the job before they get opportunity to be trained. This is with more specific reference to Credit Analysis where Bankers should under detailed learning process, else their mistakes in the process will be Very Costly beyond their manageable Position. Hence, this course will provide platform to Bankers to have fall back reference on the Critical Aspects of Credit Analysis Process, Banking/ Management Consultants can also use this course for the equipping themselves to the expectations of the Bankers while handling Credit Proposals. This Course has been Structured in self paced Learning Style. Learners can Learn Credit Analysis process at their own time, Convenience and place. Materials used in this Course will enable the participants to understand credit Analysis Process with almost Clarity. • Category: Business What's in the Course? 1. Over 171 lectures and 11 hours of content! 2. By taking this Course you will Understand, What is Credit Analysis 3. By taking this Course you will Understand, What is Working Capital Cycle 4. By taking this Course you will Understand, What is Project Financing 5. By taking this Course you will Understand, Detailed Process of Credit Analysis Course Requirements: 1. No prior knowledge is required for taking this course. 2. Students need PC / Laptop / Tab / Mobile (supporting Android / iOS) to view this course Who Should Attend? 1. Bankers 2. Consultants(Management/Banking/Finance) 3. Finance Managers 4. Entrepreneurs looking for Raising Funds 5. Department Heads 6. Chartered Accountants
Views: 4558 CARAJACLASSES
In this video, I will discuss 4 examples of ROI regarding Fox being awarded the rights to the FIFA World Cup through 2026.
Views: 17 Corey R
Social Media ROI: Socialnomics is by Socialnomics author Erik Qualman. This video showcases several Social Media ROI examples along with other effective Social Media Strategies. Music is by Bob Sinclair ("Tennessee") - Many thanks to Socilanomics for this highly relevant video to our business
Views: 2506 WSI-eMarketing
OMG wow! I'm SHOCKED how easy clicked here http://www.MBAbullshit.com for CAPM or Capital Asset Pricing Model. This is a model applied to indicate an investor's "expected return", or how much percentage profit a company investor ought to logically demand to be a "fair" return for making investments into a company. http://mbabullshit.com/blog/2011/08/06/capm-capital-asset-pricing-model/ To find this, yet another question can be queried: Just how much is the sound "decent" percentage % profit that a financier should probably receive if he invests in a business (having comparatively high risk) in contrast to putting his money in government bonds which might be regarded to be "risk free" and instead of putting his hard earned cash in the general share market presumed to offer "medium" risk? Visibly, it is almost only "fair" that in fact the investor receives a gain higher compared to the government bond percentage (due to the reason that the solitary enterprise possesses higher risk). It's moreover only just that he should expect a return larger than the broad stock exchange yield, because the specific business enterprise has higher risk compared to the "medium risk" general stock market. So just as before,how much exactly should this investor fairly receive as a smallest expected return? This is where the CAPM Model or Capital Asset Pricing Model comes in. The CAPM Formula includes all these variables simultaneously: riskiness of the individual firm depicted by its "beta", riskiness of the universal stock market, rate of interest a "risk free" government bond would give, as well as others... and then spits out an actual percent which your investor "should be allowed" to take for investing his or her hard earned money into this "riskier" single firm. This particularly exact percent is known as the "expected return", given that it can be the yield that he should "expect" or require to obtain if he invests his hard earned cash into a specific firm. This precise percentage is known as the "cost of equity". The CAPM Model or CAPM Formula looks something like this: Expected Return = Govt. Bond Rate + (Risk represented by "Beta")(General Stock Market Return --Govt. Bond Rate) Utilizing this formula, you are able to see the theoretically exact rate of return theindividual business enterprise investor ought to reasonably expect for his or her investment, if the CAPM Model or Capital Asset Pricing Model is to be held. http://www.youtube.com/watch?v=LWsEJYPSw0k What is CAPM? What is the Capital Asset Pricing Model?
Views: 517768 MBAbullshitDotCom