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What do you mean the return on investment is greater than 1? Generally normal? Is it abnormal for ordinary daily necessities?

Normal, not abnormal for ordinary daily necessities.

ROI: refers to the value that should be obtained through investment, also known as investment profit rate and accounting rate of return.

Return on investment (ROI)= annual profit or average annual profit/total investment × 100%.

As can be seen from the formula, enterprises can improve profit margins by reducing sales costs; Improve the efficiency of asset utilization to improve the return on investment. Return on investment (ROI) is usually time-sensitive-the return is usually based on a specific year.

The ROI is greater than 1:3, that is, the rate of return is greater than 33%. The higher the value, the higher the return on investment. As for whether the advertising effect is good or not, it needs to be judged according to the industry situation. Enterprises can improve profit margins by reducing sales costs; Improve the efficiency of asset utilization to improve the return on investment.

Extended data:

Generally speaking, shops can recover their investment in about 8 years, and then the annual rental return rate can generally reach 8%, and good commercial shops can reach more than 16%. Of course, different shops have different situations. There are two formulas that can be used to calculate.

The first method is mainly suitable for one-time investment and does not require loans. The calculation formula is: (monthly rent after tax-monthly property management fee) × 12= annual rental income. Annual rental income ÷ total price of shops purchased = annual return on investment. On the contrary, the total purchase price of shops ÷ annual rental income = investment payback period.

The second method is mainly applicable to the income calculation of loan investment. The calculation formula is: (monthly after-tax rent-monthly mortgage interest-monthly property fee) × 12= annual rental income. (Down payment+mortgage loan) Annual rental income = years of return on investment. On the other hand, investing with annual rental income ÷ (down payment+mortgage loan) = annual investment return rate is of course to make money. Can you make money? How much money can you earn? We can't just count income here, but also fully consider various expenses.

Baidu Encyclopedia-Return on Investment