Sentences with phrase «greater returns on the assets»
Business run by diverse boards are generating greater returns on the assets they employ.
https://www.grantthornton.global/ Not exact matches
Indeed, it's often a mistake to do so: Truly great businesses, earning huge returns on tangible assets, can't for any extended period reinvest a large portion of their earnings internally at high rates of return.
This means investors who want higher returns must consider taking on greater risk — by increasing leverage or moving into riskier asset classes.
But, in practice, the great risk to this approach is that it leads both sides to understate the cost of these liabilities by overstating the anticipated rate of return on the assets — often at a ludicrous eight percent — which are set aside to fund the program.
The debt used in buyouts has a relatively fixed cost, so if a private equity fund's return on assets (ROA) is greater than this cost, the fund's return on equity (ROE) is higher than if it hadn't borrowed money.
In the case of a bad year, however, with the firm returning 4 percent on its assets, the debt will lower profits even further than normal, since the cost of the interest is greater than the return.
A company with a high return on net assets ratio, profit margin, or asset turnover relative to its industry median tends to have greater mean reversion in these measures.
✓ You have money to invest for at least 3 years but want access to it within 10 years ✓ The money you're investing is earmarked for retirement or to be passed on to heirs ✓ You've already maxed out your IRA or 401 (k) contributions ✓ You want greater certainty and principal protection ✓ You have other assets in the market exposed to higher expected returns ✓ You want to preserve some liquidity
Riskier assets, such as stocks have a higher expected rate of return though, so it's important to not avoid these types of investments completely and miss out on potentially greater returns.
Identifying the right assets to own and when to own them is the most important step in the investment process as it will have the greatest impact on the overall return and risk characteristics of the Fund.
This is why we expect a greater return on stocks than bonds, of course; that's consistent with the capital asset pricing model and the efficient market hypothesis.
The thinking is that including a small percentage of your overall asset allocation (from 5 % - 10 %) into these assets can provide high potential returns with only a small impact on your portfolio if the risk becomes too great.
For example, corporations borrow money to buy assets when they expect a return on those assets that is greater than the cost of borrowing.
Indeed, it's often a mistake to do so: Truly great businesses, earning huge returns on tangible assets, can't for any extended period reinvest a large portion of their earnings internally at high rates of return.
«If an investor had determined that an asset allocation was appropriate for their risk / return goals, we would caution against changes in response to the yield environment because generally that involves taking on greater risk,» says Todd Schlanger, senior investment strategist at Vanguard Investments Canada.
However, the success or failure of their financial plan is subject to greater variability, since they have a greater dependence on more risky investment assets, which may or may not deliver the returns that they expect.
A Fund's investment in the common shares of closed - end funds that are financially leveraged may create an opportunity for greater total return on its investment, but at the same time may be expected to exhibit more volatility in market price and net asset value than an investment in shares of investment companies without a leveraged capital structure.
But the longer the time period you allow to build your savings the easier it is to look through short - term market fluctuations and the greater the time the compounding of higher returns from growth assets has to build on itself.
Hands - on management approach that garnered greater restaurant management participation in company objectives, strict adherence to budget initiatives, and increased patronage counts and return on assets and investments.
«Our company's mission is to make this new asset class more accessible to individuals looking for greater yield and return but who don't want to be hands - on landlords.»
REITs offer a respectable return on your investment, but investing directly into the asset itself (income property) offers an even greater return on your investment.