How to judge a good investment?
As an investor you can make an informed decision on which investment creates the best return for you. We are all looking for different things from our investments, so it is important you adjust these calculations to suit your situation and then make comparisons between the options that interest you.
Some of the basic calculations you can do are:
Gross Profit= Sales revenue – direct costs
Net Profit= Gross Profit – indirect costs
Return on capital employed= Net profit/capital employed
Find out more on how you can make these calculations work for you by reading my blog: How to judge a good investment?
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