Accounting return on investment: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Layout.) |
imported>Doug Williamson (Add links.) |
||
| Line 8: | Line 8: | ||
== See also == | == See also == | ||
* [[Accounting rate of return]] | * [[Accounting rate of return]] | ||
* [[Book value]] | |||
* [[Invested capital]] | |||
* [[Profitability]] | |||
* [[Return on investment]] | * [[Return on investment]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
Revision as of 18:18, 5 January 2021
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]
