Talk:Rate of return/Archives/2019

Does return include only cashflows or non-cash incomes and expenses also? Is return the same as net income or net cashflow?

There are non-cash incomes (recorded shipment of goods even though payment has not been received) and non-cash expenses (depreciation of a vehicle). If return is based on incomes and expenses and not on cashflow, then it seems to be the same as net income (incomes minus expenses). If return is based on cashflow, then it is different from net income but is equal to net cashflow. — Preceding unsigned comment added by 2001:569:700C:EB00:2008:7E4D:717D:BAC (talk) 20:30, 21 June 2019 (UTC)

The talk pages are intended for discussion of the article rather than the subject matter, but here is my response:

The contributor is approaching the topic from a corporate financial reporting perspective, rather than the usual investment portfolio analysis perspective. Nevertheless, I think it is safe to respond that there are unrealised contributions to returns, which are not cash flows. Cash flows tend either to create new positions, or transform unrealised gains and losses into realised ones.

--Jonathan G. G. Lewis 10:19, 3 July 2019 (UTC) — Preceding unsigned comment added by Jonazo (talk • contribs)