Skin ADV

Supply Chain Glossary

Glossary  >  A  >  Average Rate of Return  


 

Average Rate of Return


Source: Procurement Glossary
Author: Paul Rogers
Institute: CIPS - UK

Courtesy of


 

Average Rate of Return [or Accounting Rate of Return] is one of the ratios sometimes used in investment appraisal.  It calculates the returns from an investment over the period of the investment expressed as a percentage of the original sum invested.  As an example, a new machine costs $100,000 and generates net cash flow of $50,000 each year over the four years of its expected life.  The total return from the machine is $200,000 minus the original investment of $100,000 making a net return of $100,000.  To calculate the net return per annum, $100,000 is divided by four (being the expected life of the machine in years) that equates to $25,000 per annum.  Expressed as a percentage of the capital cost, the average rate of return is 25%. As it does not take into account the time value of money, Net Present Value [NPV] is more commonly used.  See also Net Present Value.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




Job Opportunities
 
Strategic Sourcing Specialist- Consumer Goods- CT
     
     International  -  PERM  -  Michael Page

Sourcing Manager - Logistics
     
     United Kingdom  -  Greater Manchester  -  PERM  -  Michael Page

VP Logistics and Fulfilment Technology
     
     United Kingdom  -  International  -  PERM  -  Michael Page

Logistics 3PL Commercial and Account Manager - Leading UK Retailer - Northampton
     
     United Kingdom  -  Northampton  -  PERM  -  Michael Page

Procurement Manager - Logistics
     
     United Kingdom  -  Coventry  -  PERM  -  Michael Page

Warehouse Solutions / Logistics implementation Design Manager- Global 3PL - Contract logistics
     
     United Kingdom  -  East Midlands  -  PERM  -  Michael Page

Head of Logistics - Market Leading FMCG Business - Logistics Lead
     
     United Kingdom  -  Derby  -  PERM  -  Michael Page

Senior Procurement Specialist - Capital
     
     United Kingdom  -  Salisbury  -  PERM  -  Michael Page

Senior Procurement Specialist
     
     United Kingdom  -  Swindon  -  PERM  -  Michael Page

Procurement Manager - Public Sector
     
     United Kingdom  -  Lancashire  -  PERM  -  Michael Page

Material Supply Planner
     
     United Kingdom  -  Derby  -  PERM  -  Michael Page

Head of Procurement
     
     United Kingdom  -  Coventry  -  PERM  -  Michael Page

Procurement Manager - Manufacturing / Engineering - Lancashire
     
     United Kingdom  -  Burnley  -  PERM  -  Michael Page

Material Planner- Raw Materials & Industrial Manufacturing
     
     United Kingdom  -  Cambridgeshire  -  TEMP  -  Michael Page

Interim Category Manager
     
     United Kingdom  -  West Midlands  -  TEMP  -  Michael Page

 

Supply chain E-learning



Explore available supply chain e-learning modules by language and academy



News & Trends
 

Last update 9 Aug 2023
Decline in manufacturing performance softens in July
   Source: S&P Global US Manufacturing PMI   -  IHS Markit
United States 


Retail

The retail sector is always on the move. Whether this involves shopping centres, shops in inner city locations or at airports – trends change very quickly and the goods change just as rapidly too. To keep up with these developments, highly complex and process driven supply chains are needed. With our...


Education
 

Resources
 
PPG INDUSTRIES, LTD.

Company Established in 1883, PPG Industries manufactures protective and decorative coatings, sealants, adhesives, metal pretreatment products, flat glass, fabricated glass, continuous-strand fiberglass products, and...

2018 Top Ten Trends in Modern Demand-Driven Manufacturing

With all signals pointing toward a good year, manufacturers have a decision to make. They can enjoy the strong economy while it lasts or look to the future and invest in technologies that will help them build a strong...