ICOR Figures And Corollary
April 24, 2013 2 Comments
Incremental Capital Output Ratio (ICOR) is the additional capital required to increase one unit of output. This ratio is used to measure the efficiency of an industrial unit or country as an economic unit. The lesser the ICOR, more efficient the organization.
India’s ICOR has more than doubled in the last year,meaning we are now half as efficient as before in the use of our capital.
In 2011-12,we needed to invest 5.4 Rupees to make 1 rupee,i.e we were getting an average 18.5% returns on our money invested in businesses.In 2012-2013,the returns fell to 8.7%.
So what sort of returns do you make on money invested in business?Is it above or below the national average? If you feel business is slower or that its increasingly difficult to turn out a decent profit.you are not alone…….
If this is the sort of returns promoters on an average can make on money,guess what investors , especially retail investors are likely to receive….. Read more of this post
If you have been following the Air Asia JV in India,you are bound to have come across the company Telestra Tradeplace. If you are curious to read more about the people behind this obscure company,continue reading this post.You will definitely get to know more about how business is actually done.
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