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ROI of a stock?



How do I find the ROI for Southwest Airlines stock (LUV)? I need this information to include in a school project.

Also, any suggestions for other significant facts that I could say about this stock? Thank you!

That's an easy one. You look at the time period of interest and look at the starting value - the ending value divided by the ending value and this will give you the return on investment (less any didvidends). Since the dividends are nil you can neglect these.

The above is for one year. If more or less than one year, multiply by number of years over the peroid of interest divided by the total year. For example, for 2 years, you'd multiply by 1/2.

Some significant facts are that AAPL has come out with some inovative products over the years and has introduced new technologies that have outpace MOT, ERICY and others.
They have branched away from the computer competition with INTL and have redeemed themselves.
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Your Return On Investment (ROI) will be any amount over what you paid. For instance if you purchased 100 shares at $1 each and then the stock went up to $2 per share and you sold the shares you made $100. Your ROI would be $100 and 100%.
Go to www.msn.com. Click on money. Click investing. Click stocks. Enter the stock symbol and it will pull up information on your stock. It will be enough for your project.

Dividend & Yield 0.02 (0.13%)
Earnings/Share 0.66
Forward P/E 19.70
Market Cap. 11.33 Bil
fyi P/E 22.00
Return on Equity 7.97
Total Shares Out. 780.83 Mil
ROI is the return on investment for a stock/project/investment. It is the same as Return on Assets. The formula is:

Net Income
_______________ = ROA

Total Assets


This says that for every dollar in assets Southwest has invested, they've generated "X" dollars of net income.

For Southwest Airlines, the equation for fiscal year 2006 looks like this:


499 million
______________ = 3.71 %

13.46 billion
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