The phrase "assets rate" is not correct and does not convey a clear meaning in written English.
It may be intended to refer to a rate related to assets, such as an interest rate or return on investment, but it lacks clarity and context.
Example: "The assets rate for our investment portfolio has increased significantly this quarter."
Alternatives: "asset return rate" or "asset valuation rate".
The Investment Operations segment performance is evaluated based upon appreciation of assets, rate of return and overall return.
Instead, he uses the equity-to-assets ratio, which measures financial health, and the return on assets rate, which measures profitability.
In addition, Lynch used a couple special criteria for financials: the equity/assets ratio, which measures financial strength, and the return on assets rate, which measures profitability.
Return on capital is similar, but not identical, to the return on assets rate that Buffett and other gurus like Peter Lynch use.
A tumbling return on assets rate (now at just 0.15%) and dividend yield (0.48%) and negative free cash flow (-$1.26 per share) make BofA's beaten-down price it's lost more than 40% in '09 seem well-deserved.
Lynch also has two special tests for financial intermediaries: the equity-to-assets ratio, which measures the firm's financial health, and the return on assets rate, which measures its profitability.
Some investors, such as pension funds, may not buy assets rated below a certain level.
During the bubble, he continued, when the country was awash in debt, toxic assets rated AAA were leveraged at an outlandish 16-to-1 ratio.
"For these other types of assets, rates of return depend primarily on the strength of the economy and how fast the economy is growing.
His fund has a somewhat riskier profile than the FPA fund, with 22percentt of assets rated below BBB, but it is far less risky than it used to be.
The new rules assign 20% risk-weighting to assets rated AA or better.
