mer = Total sales revenue (over Specific time) / Total MARKETING spend (over the same period, across all channels)
How do MERs work? The MER is expressed as an annualized percentage of daily average net asset value during the period. For example if a fund's MER is 0.78%, this means the fund incurs annual costs of $78 for every $10,000 invested in a given year.
The calculation is simple. Total revenue divided by total ad spend. Similar to ROAS, MER is expressed as a ratio. $15k in revenue on $5k in spend equals an MER of 3.0.
To calculate media efficiency ratio, divide the spend on media (for example, paying for TV spots or a radio ad) by the revenue from the total sales revenue generated from those ads.
Key Differences: While MER offers a broad perspective on marketing effectiveness, ROAS provides a more granular analysis of individual campaign performance. MER supports long-term planning and strategic adjustments, whereas ROAS aids in refining specific campaigns.
Efficiency ratio
It is calculated as: (Standard direct labour hours of actual production ÷ actual direct labour hours worked) × 100%. A ratio of > 100% indicates greater labour efficiency than budgeted and vice versa.
Calculating MER
As an example, say your last marketing campaign generated $10,000 in revenue from a $5,000 ad spend: You divide $10k by $5k (total revenue by total ad spend) That gives you an MER of 2 (10,000/5,000 = 2) We can express this total as a ratio, meaning MER in this example is 2.0.
In this case, the MER is 5. The company generated $5 in revenue for every $1 spent on marketing. Generally speaking, a marketing efficiency ratio of 5 or above is considered “good.”
The management expense ratio (MER) – also referred to simply as the expense ratio – is the fee that must be paid by shareholders of a mutual fund or exchange-traded fund (ETF).
A Management Expense Ratio (MER) represents the costs associated with owning a mutual fund. It indicates how much a fund pays in management fees and operating expenses (including taxes) on an annual basis. MERs are expressed as a percentage of the daily average net assets during the year.
Depending on whether your RESP is a mutual fund, a group RESP, or an individual account, it will have a MER between 1% to 3%.
An IMF is the only fee charged in a group savings plan with the exception of administration charges. An MER is the total expense of operating a mutual fund expressed as a percentage of the fund's net asset value.
How Do We Find Percentage? The percentage can be found by dividing the value by the total value and then multiplying the result by 100. The formula used to calculate the percentage is: (value/total value)×100%.
Net worth is the net value of the value of an individual's assets minus the value of an individual's liabilities. Net worth = Assets - Liabilities. Negative net worth is represented when assets are less than liabilities. Assets are items owned that have value, while liabilities are obligations owed.
Management Expense Ratio (MER) Calculation
The MER is the percentage of the annual fees plus the annual expenses, divided by the average net assets of the fund. Typically, MERs in Canada are below 3%.
Anything above 1.5% is considered high.
First thing's first: there is no such thing as a universally “good” MER. Although it's common to see a 3x MER referenced as “good” (likely a carryover of the 3x benchmark for LTV to CAC Ratio), a good MER is entirely dependent on your business size, what you're selling, your strategy, and your profitability goals.
The MER or expense ratio represents the total cost of managing and operating a fund and is given as a percentage of the fund's total assets. It includes the management fee and a broad range of expenses.
Some problems like transmitter and receiver phase noise, incorrect modulation profiles and even data collisions can certainly contribute to low reported MER, but the most common causes typically are the things that should be done correctly in the first place. Think cable 101.
How Do You Calculate Efficiency? Efficiency can be expressed as a ratio by using the following formula: Output ÷ Input. Output, or work output, is the total amount of useful work completed without accounting for any waste and spoilage. You can also express efficiency as a percentage by multiplying the ratio by 100.
Efficiency ratios include the inventory turnover ratio, asset turnover ratio, and receivables turnover ratio. These ratios measure how efficiently a company uses its assets to generate revenues and its ability to manage those assets.
The most common method is to take the total inventory value at the beginning of a period, add it to the total value at the end, and divide it by two. Another way to calculate the average inventory is to take the total cost of goods sold (COGS) during a period and divide it by the number of days in that period.