After all, there are some limitation
Posted: Sat Jan 25, 2025 8:18 am
Using financial information about that business, such as the total investment to be made or even the profit planned for a period — which can be monthly, annually or even quarterly —, the investor has much more transparency to make their decision based on concrete data. Limitations of the priaalthough the pri is a very relevant indicator for investors to make more accurate decisions, this does not mean that it is a metric that cannot have flaws.
s that can harm the use of the pri and that must be understood bc data india user list to avoid major surprises. As with any projection, we are talking here about future analysis, which takes into account a series of factors — internal and external — that can be complications for an investment. Imagine that you projected a profit of r$ million per year and arrived at the pri of years, is that ok? The problem is that the covid pandemic ended up hindering the performance and productivity of the company in which you invested.
The pri calculation, therefore, will need to undergo an adjustment to determine a new investment return period. In fact, this is precisely one of the limitations of the pri: the need for periodic adjustments. It is unlikely that a business will always be able to maintain what was projected as profit. After all, external and internal factors can directly disrupt this planning.
s that can harm the use of the pri and that must be understood bc data india user list to avoid major surprises. As with any projection, we are talking here about future analysis, which takes into account a series of factors — internal and external — that can be complications for an investment. Imagine that you projected a profit of r$ million per year and arrived at the pri of years, is that ok? The problem is that the covid pandemic ended up hindering the performance and productivity of the company in which you invested.
The pri calculation, therefore, will need to undergo an adjustment to determine a new investment return period. In fact, this is precisely one of the limitations of the pri: the need for periodic adjustments. It is unlikely that a business will always be able to maintain what was projected as profit. After all, external and internal factors can directly disrupt this planning.