Return on investment (ROI) is a financial ratio that measures the benefit an investor will receive in relation to their investment cost. It is most commonly measured as net income divided by the original capital cost of the investment. The higher the ratio, the greater the benefit earned. ROI can be used to evaluate the…
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Return on investment (ROI)
Return on investment (ROI) is a financial ratio that measures the profitability of an investment. It is calculated by dividing the net profit (or loss) from an investment by the cost of the investment. ROI can be expressed as a percentage or a decimal. A high ROI indicates that an investment is profitable, while a…