Posts Tagged ‘calculate’

How do you calculate Return on Equity?

Tuesday, May 18th, 2010

im doing it on UPS, and i found on yahoo finance that it’s 2.76%, but when i calculate it i end up with this:

Return on Equity: total assets – liabilities = shareholders equity
Shareholders equity average beginning ending year divided by 2(15482000 + 12183000 = 27665000)

Net profit divided by shareholders average equity

(382,000,000 / 27665000) = 13.8%

roe=13.8%

am i plugging in wrong numbers?

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How to calculate the rate of return for rental property.?

Sunday, February 7th, 2010

If I know what I paid, and the value currently, and I know how much profit I recieved per year (which in this case is defined as the distribution of income after expenses- once per year around the first of the year), how can I factor these in, to come up with a rate of return? How do I factor in that some of the distributions were tax-free, and that a portion were not, and these portions are changing from year to year.
Does somebody have an excel spreadsheet that has the fromulas plugged in to do this?

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