https://bugs.kde.org/show_bug.cgi?id=396301
Jon <clouddrive...@gmail.com> changed:
What |Removed |Added
----------------------------------------------------------------------------
Status|NEEDSINFO |REPORTED
Version|5.0.1 |5.1.2
Resolution|WAITINGFORINFO |---
--- Comment #2 from Jon <clouddrive...@gmail.com> ---
I am currently using KmyMoney version 5.1.2 running on Linux Mint version 21.
The Investment Performance By Account report continues to miscalculate the
Return on Investment for those investments that have some or all Dividends
Reinvested. The report correctly calculates Return on Investment for all other
situations, including when all Dividends are Paid Out.
Using the column headings on the report, I believe that Return on Investment
should be calculated as follows:
(Ending Balance + Dividends Paid Out + Sell Value) – (Starting Balance + Buy
Value) = Return
The % Return is then calculated by:
100 * Return / (Starting Balance + Buy Value)
Dividends Reinvested are not an item included in the return calculation because
the value of the shares from the reinvestment is already part of the Ending
Balance.
I created a KmyMoney file with only 4 transactions as a test. The share price
for all transactions is set to $100 so that price changes could be ruled out of
the issue.
For the Dividends Paid Out situation:
Starting Balance transaction – 12/31/21 buy 8 shares at $100/share = $800
Buy Value transaction – 3/22/22 buy 4 shares at $100/share = $400
Dividends Paid Out transaction – 6/30/22 = $150
Sell Value transaction – 12/2/22 sell 10 shares at $100/share = $1,000
Ending Balance = $200
($200 + $150 + $1,000) - ($800 + $400) = $150 Return
$150 / ($800 + $400) = 0.125 * 100 = 12.5% The The Investment Performance By
Account report agrees with this result.
For the Dividends Reinvested situation:
Starting Balance transaction – 12/31/21 buy 8 shares at $100/share = $800
Buy Value transaction – 3/22/22 buy 4 shares at $100/share = $400
Dividends Reinvested transaction – 6/30/22 = 1.5 shares added at $100/share
Sell Value transaction – 12/2/22 sell 10 shares at $100/share = $1,000
Ending Balance = $350
($350 + $0 + $1,000) - ($800 + $400) = $150 Return
$150 / ($800 + $400) = 0.125 * 100 = 12.5% For this case the The Investment
Performance By Account report shows an incorrect 0% return and strangely, a
15.51% Annualized Return. How can a zero return also have a greater than zero
annualized return?
I only invest in mutual funds so do not know whether the calculation is
different for individual stocks or bonds. When a mutual fund does a dividend
reinvestment they simply add the number of shares that match the dividend value
at the current price. This is not a Buy transaction.
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