Base-Year Analysis

  

Categories: Metrics, Trading, Investing

When we want to see how our company is growing (or shrinking), we might compare how we did in a variety of areas (like gross revenue or sales or market share, etc.) to how we did in those same areas last year or five years ago or ten years ago. When we compare where we are now to where we were then, that's base-year analysis. The year we use for comparison is considered the base year.

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Finance: What is Return on Sales (ROS)?3 Views

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Finance allah shmoop what is return on sales or r

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o s This is your return This is your return

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on sale Any questions Oh i see a lot of

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hands raised Ok then return on sales are roos is

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an investment metric which basically reflects how profitable a company

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is that is return here is profits and sales is

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well the stuff you sold so return on sales is

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a profitability index It speaks to how profitable and given

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industry or company runs take wear hauser the paper and

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pulp company that kills trees and makes them into paper

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in a good year They have five billion dollars in

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sales and profits of two hundred fifty million Really low

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profit margin business especially when you consider that so many

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years are well not good But the google search biz

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well it's a bunch of servers and algorithm and not

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much else So in a given year on sales of

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twenty billion box it'll have returns of something like fifteen

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billion pretax The basic notion is that you will see

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the term return on a ton of other terms like

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return on capital return on assets return on equity and

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almost always the return that they're referring to There is

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profits or earnings And from that ratio of return on

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whatever in this case return on sales Investors can impute

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a profit margin just a fraction which then derives the

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valuation and or various other metrics Important toe Understanding a 00:01:33.812 --> [endTime] given security investment that's Why we study it

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