ABSTRACT
The most inclusive measure of business performance is the overall yield of an enterprise (popularly, its Return on Investment or ROI). It is, therefore, a convenient indicator by which to sum up – and rate – your business from a banker’s point of view. Since yield is just another way of expressing value, the same goes for prospective investors in your equity. For speaking to either with confidence you need to understand how these measures are derived, and this chapter tells you how.
