The formula: "Return" here is usually net income; it goes into the numerator. Then in the denominator? Total Assets. Alllll of them. Current. Long-term. Tangible. Intangible. And others. All. That's what goes in the denominator...the whole asset enchilada.
It asks, "How well are you managing the assets you have?" Like...if you'd spent $18 billion on whatever.com factories but only had earnings of, say, $100 million, your returns are 1/18,000. So...not very good. You get the gist.
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Finance: What Is a Real Return?67 Views
finance- a la shmoop. what is a real return? like is there a fake return? you
know like the news? well kinda .real return refers to an [man frowns talking to camera]
investment return mapped against inflation. so let's say you invest in a
bond that pays five percent a year for ten years and then pays you back your
principal .boring but nice- you know like a good doctor visit. your nominal return
over that period was 5% but since inflation was 3% a year during that
period on average your real return was only 2% a year- meaning that the
performance of your investment only eked out a 2% net gain against the price of [equation]
milk gas and you know knocked off iPhones. so don't be a chump who thinks
that they're making more money than they really are, and you know keep on keeping
it real. [man sitting in chair, talks to camera]
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