What are the formula for calculating ROI all dates (Total return all dates)

Discussion in 'Microsoft Money' started by rvsw@hotmail.com, Jul 19, 2006.

  1. Guest

    From http://money.mvps.org/articles/portfolio_columns.aspx, it says
    that dividends should be included in calculation of ROI all dates(Total
    return all dates)
    So the formula for ROI should be ((market price - purchase price)+
    dividend) / purchase price.
    Is this correct?
    However, what I am seeing is that ROI all dates is calculated as
    (market price - purchase price)/purchase price.

    Is there any other parameter that includes dividends also
     
    , Jul 19, 2006
    #1
    1. Advertisements

  2. In microsoft.public.money, wrote:

    > From http://money.mvps.org/articles/portfolio_columns.aspx, it says
    >that dividends should be included in calculation of ROI all dates(Total
    >return all dates)


    Total Return - All Dates includes dividends. Check the transactions
    by clicking the [+] to see if there are dividends listed there.
    Experiment by adding a really big fake dividend. Then delete the
    fake.



    >So the formula for ROI should be ((market price - purchase price)+
    >dividend) / purchase price.
    >Is this correct?


    TR All Dates seems to be something like
    ((currentValue+amountReceived) /
    (amountSpent-amountReceived))-1 as a percentage. So if you are
    where you started, it would read 0%. If you lost all of your
    money, it would be -100%

    >However, what I am seeing is that ROI all dates is calculated as
    >(market price - purchase price)/purchase price.
    >
    >Is there any other parameter that includes dividends also


    Gain could be a useful one, and %gain would be of doubtful
    usefulness.
     
    Cal Learner-- MVP, Jul 19, 2006
    #2
    1. Advertisements

  3. Guest

    Thanks for the response.
    a) This is what I did. Went to the portfolio screen. Clicked the [+].
    There is only a buy transaction. However, the cash account contains
    dividend transactions.
    b) What is the meaning of the term amount spent in your post below? Is
    it the money taken out from the account
    c) %gain and ROI all dates show the same values for each investment.
    However, the grand total row shows % gain and ROI all dates as
    different. (ROI is greater than %gain). This may be because ROI all
    dates possibly includes cash accounts (ie. any interest credited on the
    cash account) but % gain. However, I cannot confirm

    I am puzzled why microsoft money does not include description of how
    each parameter is calculated.

    Cal Learner-- MVP wrote:
    > In microsoft.public.money, wrote:
    >
    > > From http://money.mvps.org/articles/portfolio_columns.aspx, it says
    > >that dividends should be included in calculation of ROI all dates(Total
    > >return all dates)

    >
    > Total Return - All Dates includes dividends. Check the transactions
    > by clicking the [+] to see if there are dividends listed there.
    > Experiment by adding a really big fake dividend. Then delete the
    > fake.
    >
    >
    >
    > >So the formula for ROI should be ((market price - purchase price)+
    > >dividend) / purchase price.
    > >Is this correct?

    >
    > TR All Dates seems to be something like
    > ((currentValue+amountReceived) /
    > (amountSpent-amountReceived))-1 as a percentage. So if you are
    > where you started, it would read 0%. If you lost all of your
    > money, it would be -100%
    >
    > >However, what I am seeing is that ROI all dates is calculated as
    > >(market price - purchase price)/purchase price.
    > >
    > >Is there any other parameter that includes dividends also

    >
    > Gain could be a useful one, and %gain would be of doubtful
    > usefulness.
     
    , Jul 19, 2006
    #3
  4. In microsoft.public.money, wrote:

    >Thanks for the response.
    >a) This is what I did. Went to the portfolio screen. Clicked the [+].
    >There is only a buy transaction. However, the cash account contains
    >dividend transactions.


    You can delete/void those and replace them with Dividend
    transactions entered into the investment transactions.


    >b) What is the meaning of the term amount spent in your post below? Is
    >it the money taken out from the account


    I was referring to the money you spent to acquire the investment. It
    may include other expense, but it usually just the Buys.


    >c) %gain and ROI all dates show the same values for each investment.
    >However, the grand total row shows % gain and ROI all dates as
    >different. (ROI is greater than %gain). This may be because ROI all
    >dates possibly includes cash accounts (ie. any interest credited on the
    >cash account) but % gain. However, I cannot confirm


    %gain is weird, and can be lower than -100%. %gain is "gain divided
    by cost basis" as a percentage. As a test, enter a Sell all but 1%
    of your shares for 10% more than you paid, and you will get an
    obviously meaningless number. I suggest you configure that column
    out.

    >
    >I am puzzled why microsoft money does not include description of how
    >each parameter is calculated.
    >
    >Cal Learner-- MVP wrote:
    >> In microsoft.public.money, wrote:
    >>
    >> > From http://money.mvps.org/articles/portfolio_columns.aspx, it says
    >> >that dividends should be included in calculation of ROI all dates(Total
    >> >return all dates)

    >>
    >> Total Return - All Dates includes dividends. Check the transactions
    >> by clicking the [+] to see if there are dividends listed there.
    >> Experiment by adding a really big fake dividend. Then delete the
    >> fake.
    >>
    >>
    >>
    >> >So the formula for ROI should be ((market price - purchase price)+
    >> >dividend) / purchase price.
    >> >Is this correct?

    >>
    >> TR All Dates seems to be something like
    >> ((currentValue+amountReceived) /
    >> (amountSpent-amountReceived))-1 as a percentage. So if you are
    >> where you started, it would read 0%. If you lost all of your
    >> money, it would be -100%
    >>
    >> >However, what I am seeing is that ROI all dates is calculated as
    >> >(market price - purchase price)/purchase price.
    >> >
    >> >Is there any other parameter that includes dividends also

    >>
    >> Gain could be a useful one, and %gain would be of doubtful
    >> usefulness.
     
    Cal Learner-- MVP, Jul 19, 2006
    #4
    1. Advertisements

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.
Similar Threads
  1. Bernie Guggenheim

    ROI vs Avg Return Calculations

    Bernie Guggenheim, Sep 19, 2004, in forum: Quicken
    Replies:
    3
    Views:
    611
    Guest
    Sep 24, 2004
  2. heidic2
    Replies:
    1
    Views:
    4,408
    sorenf
    Nov 15, 2007
  3. Annual Return% and ROI All Dates%

    , Jan 19, 2006, in forum: Microsoft Money
    Replies:
    4
    Views:
    868
    Cal Learner-- MVP
    Jan 19, 2006
  4. Dan
    Replies:
    0
    Views:
    525
  5. Ron W

    RE: Incorrect Total account value ROI YTD

    Ron W, Jan 13, 2007, in forum: Microsoft Money
    Replies:
    1
    Views:
    401
    Cal Learner-- MVP
    Jan 13, 2007
  6. Tom Bombadill

    Formula For Calculating DB Growth

    Tom Bombadill, Jun 13, 2006, in forum: Microsoft Point Of Sale
    Replies:
    1
    Views:
    411
    ozzie
    Jun 14, 2006
  7. Replies:
    17
    Views:
    3,671
    Ronald Raygun
    Aug 20, 2006
  8. Mahesh
    Replies:
    5
    Views:
    1,673
Loading...