According to Mozer, the rule of thumb is 200 basis points between the stable cap rate, which is defined as the stable net
operating income divided by project cost, and the exit cap rate.
Coverage Ratio — For apartment buildings, the Coverage Ratio = Net
Operating Income divided by the Debt Service.
CAP (capitalization) rate: This is the Net
Operating Income divided by the purchase price.
I define ROIC as
operating income divided by the sum of working capital plus net fixed assets plus short term debt.
For this backtest we first sorted our universe of stocks by earnings yield (EY) which we defined as
operating income divided by enterprise value.
We defined ROIC as the past 12 - months
operating income divided by the sum of net working capital (current assets minus excess cash minus current liabilities) and net fixed assets (total assets minus current assets minus intangible assets).
We also tested the ratio in two ways: trailing 12 - month
operating income divided by enterprise value, and 5 - year average
operating income divided by enterprise value.
This refers to your business's monthly net
operating income divided by your total monthly debt payments.
In other words, it's your net
operating income divided by the price of the property.
CAP (capitalization) rate: This is the Net
Operating Income divided by the purchase price.
Not exact matches
Additionally, certain sales and
operating income results for electronic bonding product lines that were previously equally
divided between the Electronics and Energy business segment and the Industrial business segment are now reported similarly to dual credit.
It is computed by
dividing a business's cash flow (more specifically, net
operating income) by the debt service payments (loan and lease payments).
At the end of the year, if you had no sales, your
income statement would show $ 0 in revenue, $ 8,000 in depreciation expense ($ 80,000 cost - $ 0 salvage value
divided by 10 years = $ 8,000 annual depreciation) for a pre-tax
operating loss of $ 8,000.
It involves
dividing your company's net
operating income by the capitalization rate for the region.
Divide the business net
operating income for a year by the amount of the total debt to be paid off (serviced) during that year.
We added together the estimated total compensation for each star on the three movies and the
operating income from each movie and then
divided to come up with the final return on investment number.
A lender is likely to calculate your company's debt service coverage ratio, which is defined as your annual net
operating income (NOI)
divided by your annual total debt service — the amount you'll have to spend paying back principal and interest on your debt.
This
divides the net
operating income — all revenue minus all reasonably necessary
operating expenses — by annual debt service — i.e., payments of principal and interest for the year.
Throughout, earnings yield is equal to trailing twelve month
operating income (EBIT)
divided by total enterprise value, price to book is equal to the price per share
divided by the most recent quarter's book value per share, price to earnings is equal to the price per share
divided by trailing twelve month earnings per share, and price to sales is equal to the price per share
divided by the trailing twelve month revenue per share.
Actual net
operating income (from previous section)($ 4,440)
divided by 12 = $ 370 per month.
Imputed net
operating income (from previous section)($ 6,600)
divided by 12 = $ 550 per month.
Simply
divide the company's
operating income by its net
income interest / interest expense.
It's calculated by
dividing a business» net
operating income by its total debt service.
A business's cash flow (usually the net
operating income)
divided by debt service payments (loan repayments and leases).
To determine the Debt Service Coverage Ratio
divide the Net
Operating Income (NOI) by the Total Debt Service.
This ratio is calculated by
dividing the Net
Operating Income (NOI) by the Total Debt Service.
As stated above, the debt service coverage ratio is calculated by
dividing a business's net
operating income by its total debt service, and it's frequently a number between 0 and 2.
It's calculated by
dividing a business's net
operating income by its total debt service.
This is calculated by
dividing the Net
Operating Income (all rental income minus all reasonable operating expenses) by the Debt Service (cash required during a specified time period to cover the payment of interest and principal on
Operating Income (all rental income minus all reasonable operating expenses) by the Debt Service (cash required during a specified time period to cover the payment of interest and principal on a
Income (all rental
income minus all reasonable operating expenses) by the Debt Service (cash required during a specified time period to cover the payment of interest and principal on a
income minus all reasonable
operating expenses) by the Debt Service (cash required during a specified time period to cover the payment of interest and principal on
operating expenses) by the Debt Service (cash required during a specified time period to cover the payment of interest and principal on a debt).
The investment
income ratio (investment
income divided by net premiums earned) takes investment
income into account, and is used in the calculation of the overall
operating ratio.
Interest Coverage Ratio:
Divide operating income by interest expense.
Many commercial listings focus solely on the property's net profit (net
operating income or NOI) and agents
divide that by the percentage return on investment they think a buyer should receive; that is, the cap rate (assuming an all - cash purchase), to determine a property's price.
CR is calculated by subtracting all operational expenses (excluding financing and capital expenses), plus vacancy and bad debt from the property's total
income and
dividing the result — called net
operating income (NOI)-- by the current value or sale price of a property.
To get the cap rate you
divide the NOI (Net
Operating Income which is rents less vacancy plus other income minus expenses) by the purchase
Income which is rents less vacancy plus other
income minus expenses) by the purchase
income minus expenses) by the purchase price.
The capitalization rate of an investment may be calculated by
dividing the investment's net
operating income (NOI) by the current market value of the property, where NOI is the annual return on the property minus all
operating costs.
Off the Net
Operating Income, divide that number by 12, for monthly i
Income,
divide that number by 12, for monthly
incomeincome.
The simplest version of the
income capitalization approach derives the value of a property by dividing the Net Operating Income (NOI) of the property with themarket capitalization
income capitalization approach derives the value of a property by
dividing the Net
Operating Income (NOI) of the property with themarket capitalization
Income (NOI) of the property with themarket capitalization rate.
The return on your investment is calculated by
dividing your net
operating income by your mortgage payment.
To determine a property's value,
divide the property's net
operating income by the desired capitalization rate.
To obtain a property's capitalization rate,
divide the net
operating income of a property by its value.