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The expense ratio of a stock or asset fund is the total percentage of fund assets used for administrative, management, advertising (12b-1), and all other expenses. An expense ratio of 1% per annum means that each year 1% of the fund's total assets will be used to cover expenses. [1] The expense ratio does not include sales loads or brokerage ...
Formula Efficiency = input / output. If expenses are $60 and revenue is $80 (perhaps net of interest revenue/expense) the efficiency ratio is 0.75 or 75% (60/80) – meaning that $0.75 are spent for every dollar earned in revenue. An example. Citigroup, Inc. (2003): Revenues, net of interest expense: 77,442; Operating expenses: 39,168
Total expense ratio. The total expense ratio (TER) is a measure of the total cost of a fund to an investor. Total costs may include various fees (purchase, redemption, auditing) and other expenses. The TER, calculated by dividing the total annual cost by the fund's total assets averaged over that year, is denoted as a percentage.
An expense ratio is the cost of owning a mutual fund or ETF. Think of the expense ratio as the management fee paid to the fund company for the benefit of owning the fund. The expense ratio is ...
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Earnings before taxes. Earnings before taxes ( EBT) is the money retained by the firm before deducting the money to be paid for taxes. EBT excludes the money paid for interest. Thus, it can be calculated by subtracting the interest from EBIT (earnings before interest and taxes). [citation needed]
The debt service coverage ratio ( DSCR ), also known as "debt coverage ratio" (DCR), is a financial metric used to assess an entity's ability to generate enough cash to cover its debt service obligations, such as include interest, principal, and lease payments. The DSCR is calculated by dividing the operating income by the total amount of debt ...
Free cash flow. In financial accounting, free cash flow ( FCF) or free cash flow to firm ( FCFF) is the amount by which a business's operating cash flow exceeds its working capital needs and expenditures on fixed assets (known as capital expenditures ). [1] It is that portion of cash flow that can be extracted from a company and distributed to ...