return of investment

Return On Investment

Return On Investment Return on Investment (ROI) is a metric used to evaluate the efficiency or profitability of an investment. It essentially compares the gain or loss from an investment to its cost. Here’s a breakdown of ROI: Purpose: Helps assess the success of an investment relative to the resources put into it. Calculation: ROI is typically expressed as a percentage and is calculated using the following formula: ROI = (Profit - Cost) / Cost * 100 Interpretation: A positive ROI indicates a gain from the investment, meaning the profit…