What is a good net profit to sales ratio? There’s no one-size-fits-all answer to what constitutes a “good” net profit to sales ratio. It varies depending on the industry, company size, and economic conditions. Here are some general guidelines. ...
Variability of ROI:Firms often use the Revenue-To-Cost (R:C) ratio instead of traditional ROI, as it offers a simpler way to assess returns. General benchmarks suggest 5X is good, 10X outstanding, and 20X exceptional. Customizing Minimum Viable R:C:Factors like average case value, contribut...
A 2:1 revenue to marketing cost ratio wouldn’t be profitable for many businesses, as the cost to produce or acquire the item being sold (also known as cost-of-goods-sold, or COGS) is about 50% of the sale price. For these businesses, if you spend $100 in marketing to generate $2...
Most investors would view an average annual rate of return of 10% or more as a good ROI for long-term investments in the stock market. However, keep in mind that this is an average.
Sometimes, the market-to-book ratio (M/B) is displayed on a per share basis: Market-to-book Ratio = Share Price ÷ Book Value Per Share What Is A Good Market-To-Book Ratio? The purpose of calculating a market-to-book ratio is to figure out whether the stock is undervalued, and the...
In theory, a PEG ratio of 1.0 indicates that the market value of the stock is aligned with its projected earnings growth. A ratio above 1.0 suggests the stock may beovervalued, while a ratio below 1.0 is generally considered favorable, indicating that the stock may beundervalued. ...
Value investors use a variety of metrics to identify bargain-price stocks. Michael Chomiak, an investment manager and financial advisor at Access Wealth in East Hanover, New Jersey, says that the price-to-earnings ratio, or PE ratio, is one of the most important. A stock’s PE ratio is ...
A good marketing ROI can vary significantly from one business to another, as it depends on individual growth objectives and profit margins. However, as a general guideline, a marketing ROI of 2:1 is typically seen as acceptable, while a ROI exceeding 5:1 is often regarded as outstanding. ...
Ultimately, search for a fund that falls below the asset-weighted average. As far as costs go, the lower, the better.The answer to whether an expense ratio is a good one largely depends on what else is available across the industry. So let’s take a quick look at what’s been ...
The VanEck Semiconductor ETF (SMH) has been a good example of what can happen if investors look beyond the expense ratio. The ETF has a 0.35% expense ratio, which is reasonable but higher than that of many other passively managed funds. However, the fund has delivered a 71.9% year-to-...