The total expense ratio (TER) is a measure of the total costs associated with managing and operating aninvestment fund, such as a mutual fund. These costs consist primarily ofmanagement feesand additional expenses, such as trading fees, legal fees, auditor fees, and other operational expenses. ...
Total housing expense is the sum of a homeowner's monthlymortgageprincipal and interest payments plus any other monthly expenses associated with their home such as insurance, taxes or utilities. Total housing expense is a key component in the calculation of a borrower’shousing expense ratio, which...
How to Calculate Income From Operations of Discontinued Components Career Growth Difference Between Operating Profit & EBIT Step 4 Divide the bank's total non-interest expense by the sum of its net interest income and non-interest income to determine its expense-to-revenue ratio. For example, div...
By considering your lifestyle and goals, you can determine how much to keep in various savings categories, each serving an important purpose. From there, you can calculate how much you should save each month. Ready to get into it? Let’s start by looking at the three key savings buckets....
It’s also possible to calculate the variable expense ratio over a period of time. Imagine that the same sporting goods company is selling a line of tennis rackets. Over a period of a month, sales reach $20,000. The variable cost of producing those water bottles is $1,000. ...
Explain how we decide the optimal time to replace an existing asset with a new one. Theoretically, how do you calculate or determine the Cost of Capital? Explain in simplistic terms for the financially challenged mind. Explain how a classified balance sheet can help Adrien know what bills...
How To Calculate Billable HoursWe’ll explore the basic steps for calculating billable hours:1. Set an hourly rateIf you charge a single rate for all your services and clients, this step is straightforward. If you charge different rates for services or clients, try outlining your rates in a...
Then calculate the number of times the expense can be paid with your annual pre-tax income. Generally speaking, the lower the interest coverage ratio, the higher the company's debt burden is, and the higher the chance of bankruptcy or default. On the flip side, a higher interest coverage...
Now that you know how to calculate return on sales ratio, let’s take a look at what a good ROS looks like. When analyzing return on sales, it’s important to keep in mind that the higher the percentage, the more profit a company is generating directly from sales vs. some other sourc...
1. Calculate monthly expenses Tracking your income and expenses is the first, crucial step toward eliminating spending patterns that can slow down your saving and investing. It can also draw attention to problematic purchases you might not be aware of, including fraudulent or double charges. To ...