«The positive evolution of the vacancy rate, together with relatively stable and controlled administration costs, could contribute to an increase in the level
of return on assets in the medium term.»
The borrower should make extra payments if the mortgage rate exceeds the rate
of return on the assets the borrower would hold otherwise.
In other words, when an iteration calls for a 1 % rate
of return on assets (and / or a 10 % standard deviation), then these values apply to all inputted investment assets, regardless of their asset class.
The rates
of return on assets, and equity (despite the decline in leverage, moved modestly higher during the years 1966 - 1982 owing to a rapid expansion in non-interest income, such as fiduciary activities, service charges and fees, net securitization income, (and later investment banking, and brokerage).
Ideally, of course, I would like to see some taxes due under this scenario because it would mean that there is some kind
of return on these assets.
Piotroski believes these ratios are important because they «reflect two key constructs underlying a decomposition
of return on assets.»
This fundamental was recently mentioned by Ken Faulkenberry in the comments section
of my Return on Assets Backtest article.
Let's take a look at a backtest
of the Return on Assets ratio to see how it performs.
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.
Using the expected rate
of return on assets rather than the risk - free rate provides an unbiased projection according to accepted accounting standards (and to R & B) of actual employer outlays.
That 42 % underfunding for PERA, by the way, makes very generous actuarial assumptions about the assumed rate
of return on assets vs. the assumed payouts.
Finally, the ratio of net income to total assets is a strong indicator of whether the company is getting a favorable rate
of return on assets.
You can edit and print just the table
of returns on the asset allocation model page or the asset allocation primer page.
If you don't know how much is going to your cash account, you can't accurately calculate your rate
of return on that asset.
A cap rate is simply the rate
of return on an asset based on income.
Not exact matches
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability
of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses
on new and maturing programs; 5) our ability to accommodate, and the cost
of accommodating, announced increases in the build rates
of certain aircraft; 6) the effect
on aircraft demand and build rates
of changing customer preferences for business aircraft, including the effect
of global economic conditions
on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result
of global economic uncertainty or otherwise; 8) the effect
of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution
of key milestones such as the receipt
of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation
of our announced acquisition
of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability
of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk
of nonpayment by such customers; 13) any adverse impact
on Boeing's and Airbus» production
of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts
of terrorism; 14) any adverse impact
on the demand for air travel or our operations from the outbreak
of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16)
returns on pension plan
assets and the impact
of future discount rate changes
on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition
of Asco
on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect
of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect
of changes in tax law, such as the effect
of The Tax Cuts and Jobs Act (the «TCJA») that was enacted
on December 22, 2017, and changes to the interpretations
of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect
of such changes; 21) any reduction in our credit ratings; 22) our dependence
on our suppliers, as well as the cost and availability
of raw materials and purchased components; 23) our ability to recruit and retain a critical mass
of highly - skilled employees and our relationships with the unions representing many
of our employees; 24) spending by the U.S. and other governments
on defense; 25) the possibility that our cash flows and our credit facility may not be adequate for our additional capital needs or for payment
of interest
on, and principal
of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness
of any interest rate hedging programs; 28) the effectiveness
of our internal control over financial reporting; 29) the outcome or impact
of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition
of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result
of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks
of doing business internationally, including fluctuations in foreign current exchange rates, impositions
of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
Investors who were underweight
on the Canadian market because
of negative outlooks
on the Canadian dollar, oil and other commodities are
returning, says Lesley Marks, senior vice-president and chief investment officer, Fundamental Canadian Equities, at BMO
Asset Management.
significant changes in discount rates, rates
of return on pension
assets, mortality tables and other factors could adversely affect our earnings and equity and increase our pension funding requirements;
Of course, a person who truly practices restraint might take things a bit further, deciding never to splurge at all
on something like a vehicle that will depreciate, and instead investing in
assets that will ultimately produce
returns.
European markets closed marginally higher
on Tuesday as tensions between the U.S. and North Korea showed signs
of subsiding, prompting investors to
return to riskier
assets.
What that means is that you are in an environment that is going to have further trouble in terms
of investment
returns that are in areas that are based
on economic growth and areas that do relatively well like bonds... Broadly speaking, I think that investors should be looking for lower prices
on most risk
assets in these developed countries with the exception
of Japan.»
Company goals for the first half
of the year related to sales growth, inventory accuracy,
return on assets (ROA), and customer satisfaction.
An important aspect
of safeguarding yourself without limiting your ability to earn large
returns on your investments is diversifying your
assets.
In a separate decision
on Monday, a judge ruled that a lawsuit calling for Mr. Najib to
return the money that had been transferred into his personal account, and for seizure
of his
assets around the world, could move forward.
Yields
on the securities have climbed to their highest levels in six years, and total
returns were negative 2.6 percent for the first two months
of 2018, making for the worst start
of a year for the
asset class since 1981.
In the US, for example, companies with at least one woman executive saw a
return -
on -
assets of 8.6 percent.
She relies
on a database
of 1,000 simulations
of future
returns to conclude that, 75 years from now, a Social Security trust fund portfolio that includes stocks will produce a healthy ratio
of assets to benefits, while a trust fund consisting
of only bonds will be completely exhausted.
Actual results, including with respect to our targets and prospects, could differ materially due to a number
of factors, including the risk that we may not obtain sufficient orders to achieve our targeted revenues; price competition in key markets; the risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in increased inventory and reduced orders as we experience wide fluctuations in supply and demand; the risk that our commercial Lighting Products results will continue to suffer if new issues arise regarding issues related to product quality for this business; the risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs and lower margins; our ability to lower costs; the risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing
on additional capacity
on a timely basis to meet customer demand; the risk that longer manufacturing lead times may cause customers to fulfill their orders with a competitor's products instead; the risk that the economic and political uncertainty caused by the proposed tariffs by the United States
on Chinese goods, and any corresponding Chinese tariffs in response, may negatively impact demand for our products; product mix; risks associated with the ramp - up
of production
of our new products, and our entry into new business channels different from those in which we have historically operated; the risk that customers do not maintain their favorable perception
of our brand and products, resulting in lower demand for our products; the risk that our products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs, including costs associated with warranty
returns or the potential recall
of our products; ongoing uncertainty in global economic conditions, infrastructure development or customer demand that could negatively affect product demand, collectability
of receivables and other related matters as consumers and businesses may defer purchases or payments, or default
on payments; risks resulting from the concentration
of our business among few customers, including the risk that customers may reduce or cancel orders or fail to honor purchase commitments; the risk that we are not able to enter into acceptable contractual arrangements with the significant customers
of the acquired Infineon RF Power business or otherwise not fully realize anticipated benefits
of the transaction; the risk that retail customers may alter promotional pricing, increase promotion
of a competitor's products over our products or reduce their inventory levels, all
of which could negatively affect product demand; the risk that our investments may experience periods
of significant stock price volatility causing us to recognize fair value losses
on our investment; the risk posed by managing an increasingly complex supply chain that has the ability to supply a sufficient quantity
of raw materials, subsystems and finished products with the required specifications and quality; the risk we may be required to record a significant charge to earnings if our goodwill or amortizable
assets become impaired; risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; our ability to complete development and commercialization
of products under development, such as our pipeline
of Wolfspeed products, improved LED chips, LED components, and LED lighting products risks related to our multi-year warranty periods for LED lighting products; risks associated with acquisitions, divestitures, joint ventures or investments generally; the rapid development
of new technology and competing products that may impair demand or render our products obsolete; the potential lack
of customer acceptance for our products; risks associated with ongoing litigation; and other factors discussed in our filings with the Securities and Exchange Commission (SEC), including our report
on Form 10 - K for the fiscal year ended June 25, 2017, and subsequent reports filed with the SEC.
Other benefits
of investments using debt include tax advantages and a higher
return on my investment (ROI) because I've used less
of my own money to purchase the
asset.
TORONTO — The 2013 - 14 financial year was an unusually strong one for the Canada Pension Plan Investment Board, which earned a 16.5 per cent annual
return on the billions
of dollars in
assets it manages for the national retirement system, but its CEO cautions that level
of growth likely won't soon be repeated.
Fitza's research builds
on (and subverts) a large body
of academic work connecting CEO performance to company performance — using
return on assets as the metric
of the latter.
«We are moving forward with a continued sense
of urgency
on our four strategic priorities: narrowing our focus
on clients, products, and geographies where we can grow profitably; driving for efficiency; growing through innovation and optimizing our data
assets and client relationships; and
returning excess capital to shareholders,» he added.
Millennium Wave Investments cooperates in the consulting
on and marketing
of private and non-private investment offerings with other independent firms such as Altegris Investments; Capital Management Group; Absolute
Return Partners, LLP; Fynn Capital; Nicola Wealth Management; and Plexus
Asset Management.
Last year, Oaktree could have netted its
return on investment
on a similar expression
of interest in Tribune's
assets from Apollo Global Management and real estate billionaire Eli Broad, Doctor noted.
A lot
of academics have analyzed total market
returns based
on indices and done Monte Carlo simulations
of portfolios with various
asset allocations, and have come up with percentages that you can have reasonable statistical confidence
of being safe.
The report found that banks with more than $ 10 billion
of assets generally had higher
returns on assets and equity, except during the worst
of the financial crisis.
The performance goals upon which the payment or vesting
of any Incentive Award (other than Options and stock appreciation rights) that is intended to qualify as Performance - Based Compensation depends shall relate to one or more
of the following Performance Measures: market price
of Capital Stock, earnings per share
of Capital Stock, income, net income or profit (before or after taxes), economic profit, operating income, operating margin, profit margin, gross margins,
return on equity or stockholder equity, total shareholder
return, market capitalization, enterprise value, cash flow (including but not limited to operating cash flow and free cash flow), cash position,
return on assets or net
assets,
return on capital,
return on invested
The HRC considered the fact that, despite credit write - downs in its home equity loan portfolio and a Visa - related litigation expense accrual, the Company's business performance for 2007 was strong, as exemplified by one
of the highest
returns on equity and
returns on assets in our Peer Group.
Cash Flow
Return on Invested Capital (CFROIC) is defined as consolidated cash flow from operating activities minus capital expenditures, the difference
of which is divided by the difference between total
assets and non-interest bearing current liabilities.
Based
on modern portfolio theory and the efficient frontier,
return is maximized for a given level
of risk through
asset class diversification.
The following may be true
of a potential takeover: • the company has fewer than 50 million shares outstanding; • management is dominated by persons near retirement age; • management's record
on innovations and improving
returns has been poor; • the company owns
assets whose market values are potentially higher than those shown
on the balance sheet; • outside investors have been steadily buying the stock.
Fairfax seeks to differentiate itself by combining disciplined underwriting with the investment
of its
assets on a total
return basis, which Fairfax believes provides above - average
returns over the long - term.
Other Post-Retirement, Net represents the other components
of net periodic pension costs not classified as Service Costs, Interest Costs, Expected
Return on Plan
Assets, Actuarial Gains \ Losses, Amortization
of Unrecognized Prior Service Costs, Settlements, Curtailments, or Transition Costs.
U.S. residents do in fact earn more
on their
assets than they pay
on their liabilities, and U.S. firms operating abroad earn a higher rate
of return than do foreign firms operating in the United States.
Under the Bonus Plan, our compensation committee, in its sole discretion, determines the performance goals applicable to awards, which goals may include, without limitation: attainment
of research and development milestones, sales bookings, business divestitures and acquisitions, cash flow, cash position, earnings (which may include any calculation
of earnings, including but not limited to earnings before interest and taxes, earnings before taxes, earnings before interest, taxes, depreciation and amortization and net earnings), earnings per share, net income, net profit, net sales, operating cash flow, operating expenses, operating income, operating margin, overhead or other expense reduction, product defect measures, product release timelines, productivity, profit,
return on assets,
return on capital,
return on equity,
return on investment,
return on sales, revenue, revenue growth, sales results, sales growth, stock price, time to market, total stockholder
return, working capital, and individual objectives such as MBOs, peer reviews, or other subjective or objective criteria.
Strategies typically employ quantitative processes which focus
on statistically robust or technical patterns in the
return series
of the
asset, and they typically focus
on highly liquid instruments and maintain shorter holding periods than either discretionary or mean - reverting strategies.
Based
on Personal Capital's model portfolio recommendation for someone my age (37), with my moderate risk tolerance and objective
of a 6 - 9 % annual
return, here is the recommended
asset allocation.
Most investors would never know that these discontinued operations distort GAAP numbers by over-stating
assets on balance sheets and distorting the picture
of a company's ability to generate a
return on that capital.
Based
on our research, none
of these
asset classes are likely to produce the same type
of double - digit
returns that investors have enjoyed in recent years.
As I typically do, I clipped off a modest portion
of our precious metals position in the Strategic Total
Return Fund
on strength last week, essentially bringing it back toward 20 %
of assets after the appreciation in those shares.