Return On Investment (ROI)

• Investment Performance
• Profitability
• Financial Analysis

Return On Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of several different investments. ROI is calculated by dividing the net profit of the investment by its initial cost.

Problem it addresses

Investors and businesses need to assess the profitability of their investments to make informed decisions and allocate resources effectively.

How it helps

ROI provides a straightforward metric for assessing the financial returns of investments relative to their cost. It helps in identifying high-performing investments and optimizing financial strategies to maximize returns and support strategic decision-making.