Accounting return on investment: Difference between revisions
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imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add link.) |
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* [[Book value]] | * [[Book value]] | ||
* [[Invested capital]] | * [[Invested capital]] | ||
* [[Investment]] | |||
* [[Profitability]] | * [[Profitability]] | ||
* [[Return on investment]] | * [[Return on investment]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[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]