Accounting return on investment: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Add links.) |
imported>Doug Williamson (Add link.) |
||
| Line 1: | Line 1: | ||
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: | ||
| Line 7: | Line 8: | ||
== See also == | == See also == | ||
* [[Accounting]] | |||
* [[Accounting rate of return]] | * [[Accounting rate of return]] | ||
* [[Book value]] | * [[Book value]] | ||
Revision as of 23:47, 6 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]
