frankninja
New Member
- Joined
- Mar 28, 2013
- Messages
- 2
Help!
I am trying to compile a return on investment (ROI) workbook for my business, which contains four subsequent departments. When I calculate my ROI for the whole organization I get one number, then when I break it down by each of the four departments and then compile those four ROI numbers together, I get a different number. Again, help!
Widget, Inc total annual investment is $1,088,881 and our organization return is 10218626 clams (just imagine with me, it's not real financial investing). So when I calculate that it is roughly 1 clam produced for every $0.11. And the point that I am trying to make is "for every $1, X amount of clams are produced (in this case it rounds to 9)".
Then, when I break it down by departments (A,B,C,D) which each had a different amount of investments put into them, and get that same measure, it starts to get funny:
Department A:
Investment: $209,830
Total Return: 287 Clams
Clams per $1: 0.001
Department B:
Investment: $519,550
Total Return: 10216344
Clams per $1: 19.664
Department C:
Investment: $237,114
Total Return: 1958
Clams per $1: 0.008
Department D:
Investment: $122,837
Total Return: 37
Clams per $1: 0.000 (after this decimal it's not important to me)
Am I to assume that I should use a weighted average formula to combine the "Clams per $1" number in order to get back to that cumulative 9 for the entire organization? Another formula? It doesn't seem like I should because it's not like I'm taking the average of another group...I don't think?
Repeat again...Help!
I am trying to compile a return on investment (ROI) workbook for my business, which contains four subsequent departments. When I calculate my ROI for the whole organization I get one number, then when I break it down by each of the four departments and then compile those four ROI numbers together, I get a different number. Again, help!
Widget, Inc total annual investment is $1,088,881 and our organization return is 10218626 clams (just imagine with me, it's not real financial investing). So when I calculate that it is roughly 1 clam produced for every $0.11. And the point that I am trying to make is "for every $1, X amount of clams are produced (in this case it rounds to 9)".
Then, when I break it down by departments (A,B,C,D) which each had a different amount of investments put into them, and get that same measure, it starts to get funny:
Department A:
Investment: $209,830
Total Return: 287 Clams
Clams per $1: 0.001
Department B:
Investment: $519,550
Total Return: 10216344
Clams per $1: 19.664
Department C:
Investment: $237,114
Total Return: 1958
Clams per $1: 0.008
Department D:
Investment: $122,837
Total Return: 37
Clams per $1: 0.000 (after this decimal it's not important to me)
Am I to assume that I should use a weighted average formula to combine the "Clams per $1" number in order to get back to that cumulative 9 for the entire organization? Another formula? It doesn't seem like I should because it's not like I'm taking the average of another group...I don't think?
Repeat again...Help!
If you are trying to proof your math by adding your claims per $ and getting the overall claims per overall dollar you will have a problem. The math doesnt work that way. You will have to do a claims per department / Overall Investment to get it to add up. Its like taking an average of averages and expecting them to equal out. 
