what does expense ratio mean?
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Pay Attention To Your Fundâs Expense Ratio The expense ratio, which is calculated annually and disclosed in the fund’s prospectus and shareholder reports, directly reduces the fund’s returns to its shareholders, and, therefore, the value of your investment.
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- over) once each month. A low inventory turnover ratio could mean there is a lack of demand for a business's products and/or inventories may be (become) overvalued. The interest coverage ratio measures a company's ability to make interest pay- ments on debt. If the ratio does not exceed the interest rate on current debt, the
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Expense ratio Expense ratio. Posted in: Financial statement analysis/Accounting ratios analysis. Expense ratio (expense to sales ratio) is computed to show the relationship between an individual expense or group of expenses and sales. It is computed by dividing a particular expense or group of expenses by net sales.Expense ratio is expressed in percentage.xpense ratio (expense to sales ratio) is computed to show the relationship between an individual expense or group of expenses and sales. It is computed by dividing a particular expense or group of expenses by net sales. Expense ratio is expressed in percentage.
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price/earnings ratio price/earnings ratio. Definition. The most common measure of how expensive a stock is. The P/E ratio is equal to a stock's market capitalization divided by its after-tax earnings over a 12-month period, usually the trailing period but occasionally the current or forward period. The value is the same whether the calculation is done for the whole company or on a per-share basis.
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Expense Ratio Calculator â For ETFs and Mutual Funds In other words, if you input 6% for investment return and an expense ratio of 0.5%, the “Cost” is the difference between and 6% return and a 5.5% return over the period. This assumes that any added expense ratio does not add any potential for out performance. This should only be used to compare similar investments.
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What Is the Difference Between a Weighted Average Expense Ratio & a Net Expense Ratio? Weighted Average Expense Ratio. The term weighted average expense ratio applies to lifestyle or fund-of-funds mutual funds. The expenses of one if these funds is calculated using the net expense ratio of each individual mutual fund included in the fund in the proportion of each fund used.
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Operating Expense Ratio Real Estate Definitions for Real Estate Investing. The Operating Expense Ratio (OER) is the ratio of the total operating expenses and the effective gross income of the property. Operating expenses are costs associated with the operation and maintenance of the property.
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- Staff Ratio and Expense Factor Calculator. The HR staff ratio and operating expense ratio are two commonly used metrics designed to measure the effectiveness of the human resources department. This worksheet will provide you with a report, based on your input, showing monthly and annual ratios. Time to Fill Open Positions Calculator.
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- Prospectus expense ratios reflect material changes to the expense structure for the current period, while annual report expense ratios reflect the actual fees charged during a particular fiscal year. This is the percentage of fund assets paid for operating expenses and management fees.
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What is the 'Gross Expense Ratio - GER' DEFINITION of 'Gross Expense Ratio-GER'. The total percentage of a mutual fund's assets that are devoted to running the fund. The gross expense ratio (GER) is exclusive of any waiver of fees or expense reimbursements.Likewise, it does not include outside expenses, like brokerage costs for trading the portfolio.EFINITION of 'Gross Expense Ratio-GER'. The total percentage of a mutual fund's assets that are devoted to running the fund. The gross expense ratio (GER) is exclusive of any waiver of fees or expense reimbursements.
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- Annual-report expense ratios reflect the actual fees charged during a particular fiscal year, while prospectus expense ratios reflect material changes to the expense structure for the current period. Annual Net Expense Ratio. This is the percentage of fund assets paid for operating expenses and management fees.
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What is the 'Operating Expense Ratio - OER' Loading the player... The operating expense ratio (OER) is a measure of what it costs to operate a piece of property compared to the income that the property brings in. The operating expense ratio is calculated by dividing a property's operating expense by its gross operating income and used for comparing the expenses of similar properties.
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- All mutual funds pay a certain portion of their assets to management, which vary according to the class and the industry of the fund. The expense ratio is a way to evaluate this factor, and those using it benefit from learning the difference between a net expense ratio and a weighted average expense ratio. Other People Are Reading.
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- Pay. Medical assistants earned less than administrative assistants at a mean $30,170 per year, or $14.51 per hour, as of May 2011, according to the U.S. Bureau of Labor Statistics.ay. Medical assistants earned less than administrative assistants at a mean $30,170 per year, or $14.51 per hour, as of May 2011, according to the U.S. Bureau of Labor Statistics.
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- Expense Ratio. The expense ratio is the annual fee that all funds or ETFs charge their shareholders. It expresses the percentage of assets deducted each fiscal year for fund expenses, including 12b-1 fees, management fees, administrative fees, operating costs, and all other asset-based costs incurred by the fund.
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What Does the Quick Ratio Tell Us About a Company? The ideal quick ratio is right around 1:1. This means you have just enough current assets to cover your existing amount of near-term debt. A higher ratio is safer than a lower one because you have excess cash. The drawback of maintaining a high quick ratio is that you may not be making effective use of your cash to grow your business.
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Operating Performance Ratios Asset Turnover Ratio. Investopedia explains: The asset turnover ratio is a measure of a company's ability to use its assets to generate sales or revenue, and is a calculation of the amount of sales or revenue generated ...
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- DEFINITION of 'Expense Ratio'. A measure of what it costs an investment company to operate a mutual fund. An expense ratio is determined through an annual calculation, where a fund's operating expenses are divided by the average dollar value of its assets under management. Operating expenses are taken out of a fund's assets and lower the return to a fund's investors. Also known as management expense ratio (MER). Next Up.
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Expense Expense. Definition: An expense is the reduction in value of an asset as it is used to generate revenue. If the underlying asset is to be used over a long period of time, the expense takes the form of depreciation, and is charged ratably over the useful life of the asset.or example, if goods are sold in January, then both the revenues and cost of goods sold related to the sale transaction should be recorded in January. An expense is not the same as an expenditure. An expenditure is a payment or the incurrence of a liability, whereas an expense represents the consumption of an asset.
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How to Calculate Expense Ratio From Financial Statements Identify revenue and expenses. The income statement is one of the four primary financial statements companies issue. The income statement shows gross sales revenue at the top, followed by various categories of expenses that are itemized and deducted, resulting in net income, or the bottom line. Step 3. Divide total expenses by total sales revenue. The expense ratio is simply defined as the amount of costs per dollar of sales.
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What Does the Company's Asset Turnover Ratio Mean? Interpretation. An asset turnover ratio of 4.76 means that every $1 worth of assets generated $4.76 worth of revenue. In general, the higher the ratio -- the more turns -- the better. But whether a particular ratio is good or bad depends on the industry in which your company operates.sset turnover is a key element in a commonly used measure of profitability: return on assets. Return on assets measures how well a company uses assets to generate profit, not just sales revenue. The formula for return on assets is Net Income divided by Average Total Assets.
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- Definition of 'Expense Ratio'. Tweet. Expense ratio is the fee charged by the investment company to manage the funds of investors. Definition: Expense ratio is the fee charged by the investment company to manage the funds of investors.efinition of 'Expense Ratio'. Tweet. Expense ratio is the fee charged by the investment company to manage the funds of investors. Definition: Expense ratio is the fee charged by the investment company to manage the funds of investors.
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What is the 'Expense Ratio' An expense ratio is determined through an annual calculation in which a fund's operating expenses are divided by the average dollar value of its assets under management. Operating expenses are taken out of a fund's assets and lower the return to a fund's investors. Also known as management expense ratio (MER).
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What are the key financial ratios to know when going through financial statements of any company? Also, how can I intuitively interpret what these ratios actually mean? By Richard Loth (Contact | Biography). The interest coverage ratio is used to determine how easily a company can pay interest expenses on outstanding debt. The ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) by the company's interest expenses for the same period.
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What is the 'Expense Ratio' A fund's trading activity, the buying and selling of portfolio securities, is not included in the calculation of the expense ratio. Costs associated with mutual funds but not included in operating expenses are loads and redemption fees, which, if they apply, are paid directly by fund investors.
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Accounting Terminology Guide - Over 1,000 Accounting and Finance Terms Funds may also opt to waive all or a portion of the expenses that make up their overall expense ratio. Annual Gross Expense Ratio. This is the percentage of fund assets paid for interest expense, operating expenses and management fees.