Calculating and Interpreting Return on Investment

[@Wisky19]

Clear explanation easy to understand.... thank you mam.

[@allkristiningram]

You are welcome 😊

[@koemenglong1333]

it is big tip for me, thanks so much

[@allkristiningram]

You are most welcome!

[@ismailismaili0071]

i really don't know how to thank you every video makes me feel good on my work.

[@ayeshasamad7416]

Simple and short, thank you for the wonderful explanation on ROI :)

[@allkristiningram]

You're welcome. Thank you for commenting.

[@MM-te6ct]

Thank you only one who explain it easy to understand

[@allkristiningram]

Thank you!

[@mhdalmurad8986]

terima kasih

[@TheWaveism]

Great video. Thanks!

[@allkristiningram]

You're welcome. Glad I could help.

[@johnjordan1897]

WoW, What a great teacher better than a cengage explanation

[@allkristiningram]

Thank you!

[@Han-yj6it]

Sorry may i know..this formula truly for ROI or ROA..?? So confused..

[@allkristiningram]

It is both. Businesses invest in assets so it is ROI and ROA.

[@adekunlechrisakinremi822]

Good job!

[@allkristiningram]

Thanks! I appreciate your comment.

[@neetitripathi3350]

Hi Kristin, Video is very helpful....Thank you.

[@allkristiningram]

+Neeti Tripathi you're welcome. Thank you for commenting!

[@Verysweetify]

Hi, can you explain to me why the answer is 10.76%? Margin is 16.18% x .67 = 10.84% Am I wrong with this?

[@allkristiningram]

It's off a bit due to rounding on the Margin and Turnover. When I did the calculation, I used the exact numbers for both. You are correct that based off the numbers there, it would be 10.84%. I should have been more clear about the rounding. Thank you.

[@dilovanmallah2403]

Hi Kristin, thank you for the clip. I have a question. Is asset turnover same as investment turnover? is the equation same for both? Thanks

[@allkristiningram]

Dilovan Mallah Investment turnover could be the same as asset turnover if the investment is in operating assets. Investment turnover can also refer to other investments such as stocks, bonds, or ownership of subsidiaries.

[@malinirajendran1160]

Have you a video on the internal rate of return and break-even point.

[@allkristiningram]

I don't have a video on IRR but I do have multiple videos on BEP. Check out my managerial accounting playlist.

[@yonijacobs8932]

Does your OI in the numerator include the deduction of Tax (Is your OI NOPAT)?

[@allkristiningram]

Operating income is before the deduction for interest and taxes. It is literally just income from operations and does not even include income and expenses from nonoperating sources.

[@yonijacobs8932]

Kristin Ingram Thanks! What about calculating Residual income, for the equation: RESIDUAL INCOME = OPERATING PROFIT - (ROR X TOTAL ASSETS) . Is the “operating profit” also EBIT?

[@allkristiningram]

It's the same as operating income. Remember there are a lot of things between operating income and EBIT. They are not the same thing.

[@yonijacobs8932]

Kristin Ingram okay thanks!

[@malinirajendran1160]

awesome as usual. what software are you using to record this lesson.

[@allkristiningram]

I use Camtasia to record my screen.

[@emas8065]

What if the total assets are not given?

[@allkristiningram]

Do you have a way to figure out total assets?

[@Kamurirubey13]

Could you help me

[@allkristiningram]

Unfortunately, I do not do tutoring at this time. If you have a question, you can post it on the related video. I cannot help with a specific test or homework problem.

[@Kamurirubey13]

I really need help ma'am. Can't fail this paper. I basically am Trying to figure out the ROI but the equation doesn't the money invested

[@allkristiningram]

Look for assets purchased or change in assets

[@allkristiningram]

Ask your professor for help. That is what they are there for.

[@allkristiningram]

As I said, I cannot help with specific exam or homework questions. I have deleted the text of the question from this thread as exams should not be shared on the internet.