Understanding Return on Investment
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BeschreibungWhether a business owner, manager, or investor, you're undoubtedly concerned with achieving maximum profit and maintaining effective management. One way to measure these two standards is by using return on investment (ROI), the most commonly used indicator of company profit and management performance. Knowing the ins and outs of ROI is essential, and while it's easy to understand the importance of this concept, it's not always easy to understand ROI itself. Understanding Return on Investment clarifies and explains all the fundamental elements of this important financial tool, making it one you can use comfortably and successfully. Written by two authorities on the subject, this comprehensive guide explains in detail all major aspects of figuring and analyzing costs versus returns of projects and acquisitions. With charts, graphs, and examples drawn from actual companies, Understanding Return on Investment shows you what the two major components of ROI are, where they originate, and how they should be controlled in your business. It highlights the various forms of ROI, including GMROI (gross margin return on investment) and CMROI (contribution margin return on investment), and how they provide different measures for evaluating investment activities. It covers the DuPont system of financial control, ROI's relationship to return on equity (ROE), solvency ratios, and decentralized management.
InhaltsverzeichnisThe Importance of Return on Investment. ROI and the DuPont System of Financial Analysis. ROI and ROE. Problems with ROI in Segments. How ROI Affects Investment and Disinvestment Decisions. Determining Profit and the Investment Base. How to Value the Investment Base. Gross Margin Return on Investment. Contribution Margin Return on Investment. Cash Return on Investment. Analyzing Sales Revenues. Analyzing Costs. ROI and Decentralized Management. ROI and Transfers Between Segments. Weighted Average Cost of Capital. The Time Value of Money. Capital Budgeting. Discounted Cash Flow Methods. Payback and Accounting Rate of Return. Comparison of Capital Budgeting Methods. Important ROI Ratios. Index.
PortraitGEORGE T. FRIEDLOB is Professor and Institute Auditors Research Foundation Faculty Fellow in the School of Accountancy at Clemson University. He has received numerous academic and professional awards, and is the author and editor of a wide variety of professional publications. FRANKLIN J. PLEWA, Jr., is Professor of Accounting at Idaho State University. The recipient of honors and awards for both teaching and research, he is the author of many books and articles. He is the coauthor with George T. Friedlob of Keys to Improving Your ROI, Financial and Business Statements, Understanding Income Statements, and Understanding Cash Flow.
Untertitel: Sprache: Englisch.
Verlag: JOHN WILEY & SONS INC
Erscheinungsdatum: Mai 1996
Seitenanzahl: 256 Seiten