In percentage terms, the coefficient is calculated as follows:
ROI = Profit for the period / Cost of investment × 100%
If the result is higher than zero, then the investment is considered profitable, if less - not. This parameter is determined for different investment options.
Let's say an investor purchased kenya email list five shares of an organization at a price of 1,000 rubles each. After 12 months, he received dividends of 50 rubles from each share. The price of shares rose to 1,100 rubles over the same period.
Thus, the average annual return on investment was:
(5 × 50 + 5 × 100) / 5000 × 100% = 750 / 5000 × 100% = 15%.
This is a general formula for calculating profitability, but the coefficient can also be determined in another way. There is a method of calculation based on current financial statements:
K ri = p.2400
0.5 × (line 1300 start + line 1400 start + line 1300 end + line 1400 end )
The corresponding lines of Form No. 1 and Form No. 2 at the beginning and end of the reporting period are taken as parameters.
The formula for calculating the return on investment based on the balance sheet of the old financial statements:
K ri = p.190F2
0.5 × (line 490Ф1 start + line 490Ф1 end + line 590 start + line 590 end ),
Where:
p.190F2 – this is line 190 of the Profit and Loss Report (from form No. 2);
p. 490F1, p. 590F1 – lines of the Balance Sheet (form No. 1) at the beginning and end of the reporting period.
The calculation of return on investment can also be done like this:
K ri = Adjusted net operating profit
Equity + Long-term liabilities
Adjusted net operating profit is net profit received after taxes and other deductions, plus accrued interest on loans, which is taken into account to reduce the taxable base.
Calculation formula based on financial statements:
K ri = p.2400 + (1 – T) × p.2330
(p.1300 + p.1400)
where the parameters are the corresponding lines of Form No. 1 and Form No. 2; and T is the income tax rate.
This formula uses data at the end of the reporting period, rather than averages in the denominator, as in the formulas given earlier. This is widely used in practice.
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Alexander Kuleshov
Alexander Kuleshov
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