Comments on: Watch out when using compounded average returns http://www.experiglot.com/2007/01/08/watch-out-when-using-compounded-average-returns/ Because you shouldn't need an MBA to be savvy about finance and business Wed, 08 Feb 2012 23:34:28 +0000 hourly 1 http://wordpress.org/?v=abc By: Peter http://www.experiglot.com/2007/01/08/watch-out-when-using-compounded-average-returns/comment-page-1/#comment-137274 Peter Fri, 29 Feb 2008 06:51:57 +0000 http://www.experiglot.com/2007/01/08/watch-out-when-using-compounded-average-returns/#comment-137274 thanks for info on CAGR and XIRR. my situation is a little different I think. I'm looking at a P&L statement covering 4 yrs. I need to measure the "CAGR" of the EBIT figures. For example, the first couple of years may be negative EBIT figures and moving to positive ebit in outer years. (-12, -16, -2, 7) There is really no initial investment per se, or an end withdrawal. What formula is the best way to measure the average yearly growth rate. CAGR or XIRR don't quite seem to work so well. It is much easier to calc CAGR if numbers are positive for each year's figures continue to grow larger. Appreciate any thoughts on this. Thanks. Peter thanks for info on CAGR and XIRR. my situation is a little different I think. I’m looking at a P&L statement covering 4 yrs. I need to measure the “CAGR” of the EBIT figures. For example, the first couple of years may be negative EBIT figures and moving to positive ebit in outer years. (-12, -16, -2, 7) There is really no initial investment per se, or an end withdrawal. What formula is the best way to measure the average yearly growth rate. CAGR or XIRR don’t quite seem to work so well. It is much easier to calc CAGR if numbers are positive for each year’s figures continue to grow larger. Appreciate any thoughts on this. Thanks. Peter

]]> By: Art Invest Online http://www.experiglot.com/2007/01/08/watch-out-when-using-compounded-average-returns/comment-page-1/#comment-134864 Art Invest Online Wed, 06 Feb 2008 19:26:29 +0000 http://www.experiglot.com/2007/01/08/watch-out-when-using-compounded-average-returns/#comment-134864 <strong>Real estate investing online...</strong> Gone are those days of book keeping and note pads, everything that use to be monitored on paper is been looked in online today. In fact, the market for real estate online investing could be better. With all the investing information online, it is possi... Real estate investing online…

Gone are those days of book keeping and note pads, everything that use to be monitored on paper is been looked in online today. In fact, the market for real estate online investing could be better. With all the investing information online, it is possi…

]]> By: BonaVista Microcharts: a very cool Excel charts add-in | Experiments in Finance http://www.experiglot.com/2007/01/08/watch-out-when-using-compounded-average-returns/comment-page-1/#comment-19761 BonaVista Microcharts: a very cool Excel charts add-in | Experiments in Finance Wed, 10 Jan 2007 21:38:47 +0000 http://www.experiglot.com/2007/01/08/watch-out-when-using-compounded-average-returns/#comment-19761 [...] You might have noticed that I’ve been using it in a couple of my posts (like here and here) that include MicroCharts built using Excel 2003. What can I say? I love the application, and even if I’d stumbled upon this product on my own, I’d be inclined to get it to use at work, anyway. MicroCharts offer a slew of different types of charts (pie, line, column, bar, bullet). For such a simple application, I find them pretty powerful. Here are some example column charts (click to enlarge): [...] [...] You might have noticed that I’ve been using it in a couple of my posts (like here and here) that include MicroCharts built using Excel 2003. What can I say? I love the application, and even if I’d stumbled upon this product on my own, I’d be inclined to get it to use at work, anyway. MicroCharts offer a slew of different types of charts (pie, line, column, bar, bullet). For such a simple application, I find them pretty powerful. Here are some example column charts (click to enlarge): [...]

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