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Unread 3 Feb 2010, 23:21   #23
Stoom
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Re: The Ministry Teaching Courses present: ROI (Return on Investment)

Quote:
Originally Posted by Knight Theamion View Post
Good points!

1) Would be the obvious example:
In certain alliance A there are two people call them E and R. They constantly attack together and together they go for the maximizing of their ROI. However they never attack real hostile planets, therefore their maximizing of the ROI is a bit myopic, not fully thought through or simply rather selfish!

2) Not relevant! As we always start with a clean sheet at the start of the round and you don't take over a planet.

3) Good point too! But I think i covered this in the section where I talked about 'landing war landings'. Taking the hit for the benefit of your alliance.

The very first point is the best point though and is something a lot of alliances fail at. For instance, I heard some alliances, even when fighting an 'enemy', sometimes take nights of in hitting them to go for 'easy roids'. Which is I think silly!
Alternative calculation
In some cases the Return on Investment (ROI) may be calculated using the following formula:
Return on Investment =
Net Income + Interest(1 - Tax Rate)
--------------------------------------
Book Value of Assets
Net Income is increased by interest after taxes. This measure is more accurate because companies can have a lot of cash that earns interest.
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