Transcript: Factors that affect your Investment decisions Introduction A) ROI impact on decision making B) Managers The return on investment formula ROI (%)=(Gains from investment-Cost of investment)/ cost of investment*100 = Net profit ($) / Investment($)*100 Methods 1. What is the scale of the investment - can the company afford it ? 2. How long will it be before the investment starts to yield returns ? 3. How long will it take to pay back the investment ? 4. What are the expected profits from the investment ? 5. Could the money that is being ploughed into the investment yield higher returns elsewhere ? Key consideration in making investment decisions are: ROI'S definition A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. End Both methods have pros and cons Return on Investment A) Accuracy B) Complexity C) Investor Payback A) Time and Risk Tolerance B)Growth or Income 1) Simple ROI 2) The discounted ROI How can ROI be useful ?
Transcript: QUESTIONS College ROI http://priceonomics.com/is-college-worth-it/ THANK YOU! Prerequisite(s) Competitive Advantage Implement New Projects Gain Credibility With Senior Management Obtain and Secure Funding Identify inefficient/successful programs Application A performance measure used to evaluate the efficiency of an investment Understand the importance of measurement Understand Phillips' 5 Levels of ROI Calculate an ROI Evaluate a program's effectiveness Follow-Up Course For Students Organization Development/Consulting Change Initiatives Quality Initiatives Meetings and Events Marketing/Promotion Course Objectives Course Outline Rosenbuddies STA 9708 Applied Statistical Analysis For MS IO Program ROI = X 100 Cost Training/Learning HR Solutions Technology Solutions Policies/Procedures Leadership/Coaching (Benefit - Cost) Benefits FIN 9770 Financial Decision Making ROI Calculation What is ROI? Return on Investment Strengthen Image Stronger Applicants Improve Programs Effectiveness
Transcript: For more information, visit... ? REAL ROI Calculating the REAL Return on Investment for public projects www.StrongTowns.org
Transcript: Pros Bottoms Up Beer Technology Presented by: Rodney Harvey Return on Investment Occupations Expenses $ 1500 to begin Profit and Loss Before and After Change in statements 2 statements reflecting current progress and ratio of growth after installing Bottoms Up Beer Tap System
Transcript: 4. Investment Center managers can influence (manipulate) ROI by changing accounting policies, determination of investment size or asset, treatment of certain items as revenue or capital 2. Achieving Goal Congruence 3. ROI provides focus on short term results and profitability; long term profitability focus is ignored. (gain from investment- cost on investment) 1. Better Measure of Profitability ADVANTAGES OF ROI. formula 1. Satisfactory definition of profit and investment are difficult to find. A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. ROI measures the amount of return on an investment relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio. 3. Comparative Analysis RETURN ON INVESTMENT (ROI) 2. ROI may influence a divisional manager to select only investments with high rates of return 6. Matching with Accounting Measurements: 5. ROI as Indicator of Other Performance Ingredients cost of investment ROI= DISADVANTAGES 4. Performance of Investment Division
Transcript: What is ROI? ROI = Net Profit/ Cost of Investment* 100 where, Net Profit= Gross Profit – Expenses Cost of Investment = Stock+ Market Outstanding + claims OR ROI= (Gain from investment – Cost of investment) Cost of investment OR ROI= (Revenue − Cost of goods sold) Cost of goods sold Advantages and Disadvantages of ROI Profits can be manipulated Three ways to improve ROI..... Formula: Reduce Expenses Matching with Accounting Measurements Comparative Analysis Submitted To: Mr. Vibhu Ashok Sir To control our investment we must have an objective. For good investment we should know about our : 1.) Promo plan 2.) Right customer for the the investment 3.) Reflection on sales 4.) Either short term or long term investment. Increase Sales Example : Return On Investment Disadvantages of ROI Discourage Managers from investing in it A. Gross profit 1428 B. Investment 2200 C. Expenses 385 ROI = Net Profit x 100 Cost of investment = (1428 – 385) x 100 2200 = 1043 2200 = 47.40% Manager may focus on sort run on te expense of long run Better Measurement of Profitability Advantages of ROI IT Performance Analysis Controlling the ROI ROI Methodology Can Lead to disfunctional decisions Achieving Goal Congruence ROI is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments. Using ROIT , to perform an IT performance analysis on corporations , it was found that the result for all companies was inconclusive. The data indicated that on average, companies that spend more on IT are not achieving higher results , while companies spending less on IT , are not seeing lower performance . The research indicates that ROIT performance for particular companies is not driven exclusively by how much each company spends , but rather by how they spend and how well the spending is managed . Therefore , a company with sustainable profitability and frugal IT investments will have a higher ROIT than companies with lower profitability and higher IT investments . What is it ? Why use it ? Systematic approach to evaluating all types of programs and projects . Captures six types of data from reaction to ROI Credible and scalable process. Most widely used evaluation system , with global adoption . Submitted by: Ayushi Vijayvargiya Kanika Goyal Kavita Kushwa Rashi Nagda Yashi Agrawal Reduce Assets Performance of Investment Decision
Transcript: Return on Investment Sam Daniel Sam Daniel 2 different paths Owes 87,116 Plus Interest Sam Sam Gets a job paying 50k p/yr Gets a job in a warehouse making $12 an hour Owes no debt Daniel Daniel 2 years later 2 years later Sam $4167 p/mo $800 p/mo $3367 Has stayed at the same warehouse since graduation. Makes $14 per hour (work hours vary) 2000-2240 p/mo Daniel Daniel Uncertain future Uncertain future Salary isn't everything Salary isn't everything An Automated Future "About 58% of CEOs plan to cut jobs over the next five years because of robotics, while 16% say they plan to hire more people because of robotics" - USA Today A Changing World A Changing World Questions? Questions?
Transcript: RETURN ON INVESTMENT Shy'Davia Baxley Investment Colleges, Universities, Technical Schools, and military Used to determine how long it will take to double your money Attainable _____________ An achievement Money Investments Sweat Equity Power of Compounding (COGS= Cost of Goods Sold) Time Net Profit Relevant Energy Rule of Interest Rates Specific Time ROI S.M.A.R.T Goals: Education Selling price - COGS Measurable Business Time-bound
Description: If you work in education, make your next report visually interesting and easy to navigate. The line-drawn illustrations in this edu report presentation template encourage curiosity and discovery.
Description: For grant requests, program proposals, or any other nonprofit or education presentation, this globe-themed creative Prezi template is the way to generate interest and momentum. Like all Prezi education templates and Prezi nonprofit templates, it’s easy to customize.
Description: Stand far above the stacks and stacks of flat, boring resumes on any hiring manager’s desk with a Prezi resume template. Just customize this Prezi presentation template to create your very own “Prezume” and impress them with your dynamism, coolness, and originality.
Description: A well-organized lesson plan is the difference between getting things done and things getting out of hand. This vibrant, customizable, easy-to-use Prezi presentation template features a sticky note theme, so you'll be able to keep track of topics, assignments, exams, and more without missing a beat.
Now you can make any subject more engaging and memorable