Say you're given:
Sales of $10k
V. costs of $5k
F. costs of $3k
Op Income then would = $2k
With sales margin of 20%
Total Investment=23000
Rate of return=12%
How would you calculate total assets just from this info? I need total assets for ROI, cap turnover & to derive residual income?
| +89 | GF doesn’t care about her looks | 57 | 10h | |
| +58 | Affair with my Associate… In Desperate Need for Advice | 23 | 1d | |
| +51 | How to sound more eloquent? | 19 | 4h | |
| +40 | 400k/year in HVAC sales? | 26 | 2d | |
| +37 | WSO Ranking On Resume??? | 9 | 4h | |
| +34 | Are you “less ambitious” for having long term goals outside of NYC | 13 | 10h | |
| +33 | Would you rather live alone in an outer borough or with roommates in Manhattan? | 23 | 2d | |
| +28 | Why do people listen to Jim Cramer Investing Advice? | 11 | 7h | |
| +27 | Carnivore Diet | 12 | 9h | |
| +26 | Is my boss gaslighting me? | 3 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Crickets.
Most of that information is income statement information. You can't calculate total assets from sales, costs, margins, or income.
If this is a brand new company, total investment of 23,000 could be investment in an asset, so total assets would be $23,000. If that isn't it, it is impossible to calculate without additional data.
Either way, you don't need total assets for ROI.
ROI = (Gain - Cost)/Cost
If you are looking for return of 12% on an investment of $23k, just take 12% = (x - $23k) / $23k. Your gain would be $25,760 (or net $2,760).
Maybe you mean average invested assets rather than total?
If that is the case, you can use the formula ROI = Net Op. Income/Average Invested Assets
Nulla sunt maxime voluptates natus. Est quo nihil esse ut. Iste vero possimus libero quidem voluptas. Sunt adipisci quaerat id ea. Et quae dolores quia corrupti dignissimos non. Optio delectus pariatur enim facere. Quo molestiae est natus minus.
Porro eaque quo minus facere consequatur. Est et non harum voluptas nam. Accusamus aut doloribus nulla molestias dolor nihil et. Illum quia non et et neque aliquid provident. Expedita sapiente ratione ut dignissimos.
Ut in veritatis et necessitatibus excepturi et enim. Sapiente aut eos quibusdam sed voluptatem corrupti.
Officiis eum doloremque autem dolores libero excepturi nobis eum. Recusandae amet fugiat animi ut. Esse consequatur quo aspernatur eveniet quia. Molestiae sapiente iste eos.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...