Obtain the data needed for the expense ratio calculation. Specifically, you will need the mutual fund's costs, which include the management fee of total average assets, the 12b-1 distribution fee, administrative charges and the net expense ratio. In addition to costs, you will also need the ...
A small percentage of the TER may be directed to other business operation costs. This can include expenses as simple as space rental and utilities for the business. Often, these expenses are referred to asoverheadand include any financial obligation that is not necessarily directed to the actual...
taxes or utilities. Total housing expense is a key component in the calculation of a borrower’shousing expense ratio, which is used by lenders to determine whether a borrower qualifies for a mortgage loan.
Calculate the sum of net interest income and non-interest income. For example, add $400,000 in net interest income to $600,000 in non-interest income. This equals $1 million in total net interest income and non-interest income. We Recommend Personal Finance The Ratio of Currency to Deposit...
Understanding the concept of Customer Acquisition Cost (CAC) and its proper calculation is really important for businesses striving to refine their marketing strategies. Here I have given some of the examples that demonstrate the methodologies companies from different industries employ to calculate CAC an...
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...
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. ...
Most lenders are looking for a combined loan to value ratio of 85% or less in borrowers seeking a home equity line of credit. What Happens If Your LTV Is Too High? For those whose LTV is too high, waiting until the value of the home increases or paying down their current loan can he...
Hub Accounting Billable Hours: What Are They and How to Calculate Them January 3, 2025Billable hours are the time spent working on client projects which can be billed directly to the client. Understanding billable hours is important for setting your hourly rates, organizing your projects, ...
And although calculating your LTV to CAC ratio isn’t difficult, the process of knowing it and taking steps to improve it is the real test. Here, we’ll run you through how to calculate your ratio, answer the question: 'What is a good LTV to CAC ratio?’ and address methods for im...