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By adding these percentages together a 'book' of 120% is achieved. The amount by which the actual 'book' exceeds 100% is known as the 'overround', [1]: 96–104 [2]: 126–130 'bookmaker margin' [4] or the 'vigorish' or 'vig' [4] and represents the bookmaker's expected profit. Thus, in an "ideal" situation, if the bookmaker accepts £120 in ...
Here various adjustments to the balance sheet book value may be required; [1] see Clean surplus accounting. More typically, the company is assumed to achieve maturity or "constant growth", at time , and the below formulae are applied instead. [2] (Note that the value will remain identical: the adjustment is a "telescoping" device).
Three main factors in Hollywood accounting reduce the reported profit of a movie, and all have to do with the calculation of overhead: Production overhead: Studios, on average, calculate production overhead by using a figure around 15% of total production costs.
ROIC = NOPAT / Average Invested Capital There are three main components of this measurement: [2] While ratios such as return on equity and return on assets use net income as the numerator, ROIC uses net operating income after tax (NOPAT), which means that after-tax expenses (income) from financing activities are added back to (deducted from) net income.
To calculate 'impact of prices' the formula is: Impact of prices = option delta × price move; so if the price moves $100 and the option's delta is 0.05% then the 'impact of prices' is $0.05. To generalize, then, for example to yield curves: Impact of prices = position sensitivity × move in the variable in question
The main drawback of ROCE is that it measures return against the book value of assets in the business. As these are depreciated the ROCE will increase even though cash flow has remained the same. Thus, older businesses with depreciated assets will tend to have higher ROCE than newer, possibly better businesses.
The PEG ratio takes this initial calculation and divides it further by a company’s earnings growth rate. ... beyond PEG and P/E ratios, are price-to-sales (P/S) and price-to-book (P/B) ratios ...
NOPAT is the net operating profit after tax, with adjustments and translations, generally for the amortization of goodwill, the capitalization of brand advertising and other non-cash items. EVA calculation: EVA = net operating profit after taxes – a capital charge [the residual income method]