The internal rate of return, or IRR, is the rate of return of an investment (a cash outlay) where external factors, such asinflationor thecost of capital, aren't considered. IRR can be used to measure the actual return on an investment made in the past, or it can be used to estimat...
establishing anefficient sales process, and streamlining theirsales pipelines. At the same time, none of that hard work matters if they don’t keep an eye on certain metrics and nor have an effective pricing strategy. For commercial evolution to happen, your company needs to calculate and increa...
You can find tax-free, tax-deferred or taxable investments that allow you to access your money if needed. However, if you stand a good chance of needing your cash early, avoid putting it in a traditional IRA or other investment account that penalizes you for early withdrawal. You may also...
The attrition rate measures the number of employees who’ve left an organisation within a set period of time. Learn to calculate & decrease this number.
ROIC = [operating income x (1 - tax rate)] / [total assets - (liabilities - short-term loans)] Examples of ROIC Now that you understand how to calculate ROIC, you can see an example to learn how to go through the process. You can look into instances of companies using the informatio...
If you ever decide to take the plunge and buy a home, your mortgage will likely be the largest debt you'll ever take on. And as part of owning a home, you may be faced with fees in terms of mortgage points. However, paying mortgage points can sometimes m
In this article, we’ll explore the concept of fill rate, its significance, and how to calculate it. We’ll explore the different types of fill rates and the factors that impact them. Plus, we’ll answer frequently asked questions about fill rate and its relationship with other supply chain...
Here’s how ROCE works, including how to calculate it, the ratio’s limitations and how ROCE compares to several other popular financial ratios. Why ROCE matters ROCE is the amount of profit a company generates for each dollar of capital employed in the business. The higher the profit generat...
Add 1 to each rate of return (this simplifies handling negative returns). Multiply each sub-period's rate of return together. This step is crucial to ensure the returns across different periods are compounded. Subtract 1 from the result to calculate the TWR. ...
How to Calculate Your Savings Rate Yoursavings rateis the percentage of disposable personal income that you keep rather than spend on consumption or obligations.7 Say that your net income is $25,000 a year after taxes (i.e., your disposable income) and over the course of the year you als...