Accounting return on investment: Difference between revisions
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A measure of profitability based on accounting profits divided by the book value of invested capital. | A measure of profitability based on accounting profits divided by the book value of invested capital. | ||
This measure may be calculated in a number of different ways, for example: | This measure may be calculated in a number of different ways, for example: | ||
[Average annual accounting profit over the project life] ÷ [Average book value of investment in the project] | [Average annual accounting profit over the project life] ÷ [Average book value of investment in the project] | ||
== See also == | == See also == | ||
* [[Accounting]] | |||
* [[Accounting rate of return]] | * [[Accounting rate of return]] | ||
* [[Book value]] | |||
* [[Invested capital]] | |||
* [[Investment]] | |||
* [[Profitability]] | |||
* [[Return on investment]] | * [[Return on investment]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
Latest revision as of 14:41, 9 July 2022
A measure of profitability based on accounting profits divided by the book value of invested capital.
This measure may be calculated in a number of different ways, for example:
[Average annual accounting profit over the project life] ÷ [Average book value of investment in the project]
