This is an amazing presentation! All those years learning finance and accounting, and even working in accounting for 10 years, I never really thought about growth this way. Thank you!
Soooooo helpful, thank you so much!!!!! What account in assets went up by $35,000? Also, what is the difference between ROA x RETENTION RATIO and ROA x RETENTION / (1-ROA)RETENTION?
If total equity is taken from an ending balance sheet then the formula you are pointing out is the right one. However, if total equity is from the beginning of the period, then the simpler formula is the correct one.
In a country where there is no income tax required, but there is a VAT ( value added tax ),say 15%, on all goods and services, how do you calculate Net Income, NI?. The business is a manufacturing company.
You only use the numerator when you take the ending value of equity for calculating the ROE. In the video, he is calculating the ROE just with the beginning value.
This is an amazing presentation! All those years learning finance and accounting, and even working in accounting for 10 years, I never really thought about growth this way. Thank you!
excellent presentation. That was easy to digest. Thanks!
Easy to digest explanation, you just helped me with my homework. Thank you!
Soooooo helpful, thank you so much!!!!! What account in assets went up by $35,000? Also, what is the difference between ROA x RETENTION RATIO and ROA x RETENTION / (1-ROA)RETENTION?
same question
same question too
If total equity is taken from an ending balance sheet then the formula you are pointing out is the right one. However, if total equity is from the beginning of the period, then the simpler formula is the correct one.
when dividing 1-roa you are minimising your risk
@@MontesSuper Thanks for the answer. Would you happen to know why? mathematically, it just hasn't clicked yet for me.
Loved the video! Thank you so much
What a great video 🔥 u help me so much
Thank you! this help me alot.
Happy to hear :)
Thanks
In a country where there is no income tax required, but there is a VAT ( value added tax ),say 15%, on all goods and services, how do you calculate Net Income, NI?.
The business is a manufacturing company.
What is the difference between ROE X Retention Ratio and ROE X Retention Ratio / 1- (ROE x Retention ratio)
You only use the numerator when you take the ending value of equity for calculating the ROE. In the video, he is calculating the ROE just with the beginning value.
Thanks!
If Actual Growth Rate of a company is higher than sustainable growth rate , is it called Internal Growth rate or are they two different things?