Return on Investment (ROI)
Return on Investment (ROI) measures the gain or loss generated on an investment relative to the amount of money invested, indicating the efficiency of the investment.
Benefits
Return on investment (ROI) indicates the efficiency of an investment by comparing gains to the invested amount.
Frequently Asked Questions
What does the return on investment measure?
Return on Investment (ROI) calculates the efficiency of an investment by comparing the net profit to the initial cost.
What is ROI determined by?
ROI (Return on Investment) is calculated by dividing net profit by the initial investment cost and converting it into a percentage.
What is return on investment ROI quizlet?
ROI measures how efficiently an investment generates profit, calculated as (Net Profit / Cost of Investment) x 100.
Key Takeaway
Return on investment (ROI) checks how efficient an investment is by comparing the gains to the costs.