Return on Investment is the gain or loss that occurs to a business in comparison with the total amount of money that was invested into the business. Return on Investment helps a business determine whether it is making profits or loss. A Pool Vacuum Business is the business of selling or leasing pool vacuum for use by residential and commercial swimming pools with filtering system. Return on Investment is a very important term for a pool vacuum business. There are several types of return on investment that can occur in a pool vacuum business. They are as follows:
- Total Return:
Total Return is a form of return on investment that can occur in a pool vacuum business. Total return measures how well an investment has performed over a particular period of time, for instance, one month, one year or ten years. Total return is the total profit made from a particular business investment. In a pool vacuum business, if you invest $10,000 and you receive a profit of $3000 over a period of one year. If also the value of your assets increase over that period of time from $10,000 to $11,000 your total return on investment is $4000.
- Percentage Return:
Percentage Return is another type of return on investment that can occur in a pool vacuum business. Percentage Return is the total percentage of the amount of profit made on a business investment. For instance, if a person operating a pool vacuum business invests the total sum of $10,000 and the pool vacuum business makes a profit of $3000 over a period of one year, the percentage return for the pool vacuum business is 30%
- Average Annual Return:
Average Annual Return is a type of return on investment that can occur in a pool vacuum business. Average Annual Return is the average of the annual returns that a business investment has had over the period of time within which it was established. For instance, if you establish a pool vacuum business in the year 2012 and invested the sum of $10,000. If by 2017 you have made the total sum of $5000 profit from the pool vacuum business. The average annual return on investment for the pool vacuum business is $1000 or 10%
Interest is a type of return on investment that can occur in a pool vacuum business. This is a type of investment that will occur if a person buys stock in a pool vacuum business. Interest is the percentage of money that accrues on your stock over a period of time. Interest calculation will enable an investor to know exactly how much will be earned on an investment over a particular period of time.
The dividend is another type of return on investment that can occur in a pool vacuum business. The dividend is a type of return on investment that is applicable to a situation whereby a person purchases stock in a pool vacuum business. The dividend is the amount of money paid to a shareholder on a yearly basis. The amount of dividend a shareholder receives depends on the value of the shareholder’s shares and the financial performance of the company during the year.