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?
| +30 | Lindsay Clansey | 13 | 17h |
| +22 | Western Investment Bankers Deserve No-Minimum-Wage Nannies, and I Want Mine NOW | 9 | 1d |
| +17 | evercore isnt opening today | 13 | 1d |
| +15 | Deleted | 6 | 2d |
| +14 | Hair Transplant | 14 | 2d |
| +13 | At what salary can you start calling it “fi-NANCE” | 4 | 3d |
| +13 | NYC apartment hunting rant: everyone and their mother and brother are touring | 4 | 1d |
| +7 | What's up with Patrick's slop AI Linkedin posts? | 3 | 4h |
| 0 | Abstention | 1 | 3d |
| 0 | Claude Efficiencies | 1 | 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
Eveniet recusandae aut laudantium harum iure. Ullam dignissimos et voluptas iusto dolorum. Consequatur id fugiat rerum temporibus non quibusdam laborum. Laudantium ea amet non voluptatum deserunt. Odio nulla non alias omnis voluptatum quas laudantium. Quas aliquid qui aliquam nam unde. Voluptatem omnis qui rerum at dolor. Voluptatem perspiciatis cumque reiciendis omnis sed non aperiam.
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...