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Investment Rate
| Name | Investment Rate |
| Descriptio | Rate of new investments in tangible assets |
| Interpretation | A relatively high investment rate explains the 'size' of investment. It is used to measure in percentage the new investment of total investment. Company who want to use that KPI have to take following into consideration, 1) new fixed assets directly from acquisition; 2) new construction in process directly from acquisition; 3) do not calculate new fixed assets which is transferred from construction in process. Investment Rate measures the relative amount of new investment in a company, while ROI gives information about investment efficiency. It's better to understand the peers / competitors' investment rate, that can be a great help for the company to determine its own relative strengths and weaknesses. |
| Calculation Formula | Investment Rate = (Total Investments in Tangible Assets) / (Tangible Assets at Year End) |
| Unit of Measure | % |
| Direction of Improvement | maximize |
| Industry Relevance | |
| Country Relevance |