Performance Measurement

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Cards (9)

  • ROI = Pre-Tax Profit / Net Assets * 100
  • ROI [Sales Calculation] = (Pre-Tax Profit / Sales) * (Sales / Net Assets) * 100
  • RI is residual income
  • RI = Income - Required Rate of Return * Investment
  • RI = Income - Capital Charge
  • Capital Charge = Required Rate of Return (by the investors) * Investment
  • EVA is economic value added
  • WACC is the weighted average cost of capital
  • EVA = After-Tax Profit - WACC * Net Assets