Most investors are interested in one thing: return. One of the most common ways to calculate or measure total return is with the metric ROI (return on investment). ROI is calculated by dividing the total investment return by the original cost of the investment. In order to do this, you m...
To help you evaluate your company’s finances, we’ll break down five key types of revenue—what they mean, how they’re calculated, and how to evaluate them. Total revenue: The easiest way to calculate sales revenueTotal revenue, also known as gross revenue, is one of the simplest, ...
The quick and (mostly) correct way to find the amount of return dividends will add to total return is to simply add the current dividend yield to our return numbers so far. Adding Coca-Cola’s current dividend yield of 2.7% to the 5.4% returns we’ve calculated so far gives us an ...
Return on total assets (ROTA) is one of the profitability indicators that measures how efficiently the firm manages its assets to earn profits. Its formula is a simple ratio of the Operating Profit to the Average Assets of the return on total assets ratiodetermines companies that are using thei...
The exchange traded fund total return calculated contains idealized return data. It is based on closing and opening prices and would not match a real investor's gains exactly. The tool is for informational purposes only. We cannot warrant any results. ETF outputs are good for initial research,...
Traditionally, ROI is calculated by dividing the net income from an investment by the original cost of the investment, the result of which is expressed as a percentage using the following formula. ROI = net income ÷ cost of investment × 100 ...
Cumulative Rate of Return Adding the cumulative rate of return to this equation, it can be rearranged as: (1 + RA) ^ n = 1 + RC. Where RA is the annualized rate of return, RC is the cumulative rate of return (calculated above) and n is the number of years considered in the calcu...
The investment gain is also calculated for you (the top part of the return on investment formula). That’s provided at the bottom, labeledInvestment Gain. One thing that won’t tell you, though, is how long it took to make that return. ROI doesn’t take into account the amount of tim...
How Is APY Calculated? APY standardizes the rate of return. It does this by stating the real percentage of growth that will be earned in compound interest assuming that the money is deposited for one year. The formula for calculating APY is (1+r/n)n - 1, where r = period rate and ...
Return on investment (ROI) is calculated by dividing the profit earned on an investment by the cost of that investment. For instance, an investment with a profit of $100 and a cost of $100 would have an ROI of 1, or 100% when expressed as a percentage. Although ROI is a quick and ...