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?
| +74 | Dream Wife | 57 | 18m | |
| +71 | Investment Banking Interns - Learn to Abuse the Office Printer. Here Are 5 Tips to Make Sure You Land The Return Offer This Summer. | 8 | 3h | |
| +46 | In Light of BofA Events Remember What's Important In Life | 1 | 21h | |
| +40 | Did someone hack WSO on LinkedIn? | 12 | 3d | |
| +30 | BAN Bronzbomba from WSO | 5 | 1d | |
| +26 | Thoughts on Stifel’s Sex Scandal? | 17 | 22h | |
| +25 | What is stressing you out? | 11 | 1h | |
| +22 | Does Jawline Matter in Sell-Side? | 7 | 2d | |
| +20 | Firms with a strong Physical fitness culture | 9 | 3d | |
| +19 | Footy in NYC this summer | 1 | 3d |
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
Autem ut perspiciatis ullam non sit neque recusandae. Maxime iusto pariatur ipsum rerum molestiae. Quo molestias qui est unde vel aut maxime non. Adipisci sit perferendis et illum.
Cupiditate consequuntur reprehenderit iure. Reprehenderit nisi quas cum dolorum illum. Rerum non optio voluptas ipsa optio. Illum architecto ullam illo quod repudiandae. Eos dolor id voluptates fuga vel fugit.
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...