Inaccurate and Variable YTD ROI

Clint

I've noticed the same problem with YTD ROI % & Returns in "portfolio view" as originally posed by "fp". I'm using latest ver Q 2019 Deluxe. I have several positions bought in Dec '18 that now, Jan '19, showing correct values for cost, gain/loss, dividends, etc in the "details view" for the position(s); but, the YTD ROI values are outrageously & incoherently wrong. However, when looking at the column set up to display "ROI Return or %" values for these same stocks (which are calulated as per any date set in the "portfolio preferences")  the ROI values are correct! The ROI calculations for other positions held 1, 2, 3 years all appear close, if not absolutely correct.


Note: This conversation was created from a reply on: Inaccurate and variable YTD ROI.

Jim_Harman

Jim_Harman

q_lurker

Jim_Harman

q_lurker

Jim_Harman

Jim_Harman

Clint

I checked the price history, in the "security detail view", for this particular position, which I've held for less than 2 months & never owned it before..no placeholders, etc . The 1/2/19 downloaded price  $14.00 = a $16800 value of the position. Today it's current price is $14.79 x 1200 shares = a position value of $17748. A $948 gain YTD. The "return YTD" column, at these quotes shows a $1260 gain (no dividends or cap gains YTD just pricing gain) vs the $948 value I just detailed.

The "ROI %YTD" column indicates a +7.64%;  the "Return % YTD" column indicates +7.4964% gain...close enough, but the $948 gain divided by the 1/2/19 position value would calculate to a 5.64%, not close. ???? Tell me if u see where my math or understanding of the Quicken formulas are wrong.

I'm sure my other equities may exhibit the same aberration, but this particular one stood out like a sore thumb.

After considering this problem, I do believe my preferred metric should be "Return % YTD" rather than "ROI % YTD", but at this time they are both present a similar questionable math outcome/accuracy. Others have mentioned Average Annual Return, or IRR...but my understanding is that IRR is usually employed by accountants trying to determine best possible capital expenditure possibilities.

Thanks for the prior helpful comments but I guess I "gotta call the guy" for further info now.

q_lurker

I checked the price history, in the "security detail view", for this particular position, which I've held for less than 2 months & never owned it before..no placeholders, etc . The 1/2/19 downloaded price  $14.00 = a $16800 value of the position. Today it's current price is $14.79 x 1200 shares = a position value of $17748. A $948 gain YTD. The "return YTD" column, at these quotes shows a $1260 gain (no dividends or cap gains YTD just pricing gain) vs the $948 value I just detailed.

The "ROI %YTD" column indicates a +7.64%;  the "Return % YTD" column indicates +7.4964% gain...close enough, but the $948 gain divided by the 1/2/19 position value would calculate to a 5.64%, not close. ???? Tell me if u see where my math or understanding of the Quicken formulas are wrong.

I'm sure my other equities may exhibit the same aberration, but this particular one stood out like a sore thumb.

After considering this problem, I do believe my preferred metric should be "Return % YTD" rather than "ROI % YTD", but at this time they are both present a similar questionable math outcome/accuracy. Others have mentioned Average Annual Return, or IRR...but my understanding is that IRR is usually employed by accountants trying to determine best possible capital expenditure possibilities.

Thanks for the prior helpful comments but I guess I "gotta call the guy" for further info now.

@Clint:  As Jim identified, you really should be checking the math using the 12/31/18 closing value, or whatever date you have a value for prior to that date. 

Also, if you would like to identify the security, we could do the same math or perhaps better identify what is happening.  

my understanding is that IRR is usually employed by accountants trying to determine best possible capital expenditure possibilities.

Not really with respect to Quicken.  Quicken describes their calculation as:  "a percentage equal to the interest rate on a bank account that would
give you the same total return on your investment".  My opinion is that Average Annual Return (aka IRR) is the most universal calculation Quicken offers that addresses all types of return and the timing of those returns.  It is a calculation most reflective of your personal investment decisions.  For short term period (like beginning of year to now), the results can be deceptive, but that is the actual math, not Quicken's implementation of the math.  

Jim_Harman

Thanks for the details, Clint.



What was the 12/31 (or most recent earlier) share price?

Clint