Roi
| ROI, or return on investment, is an important metric for businesses to track. It is a measure of how much profit a company makes in relation to its investment costs. For example, if a company has an ROI of 10%, that means it is making 10% profit on every dollar it invests. ROI is a key indicator of a company's financial health and performance. It is used by investors and analysts to assess whether a company is a good investment. A high ROI indicates that a company is efficient and profitable, and is therefore a good investment. A low ROI indicates that a company is less efficient and less profitable, and is therefore a less attractive investment. There are a number of different ways to calculate ROI. The most common method is to divide a company's net profit by its investment costs. This gives you the percentage of profit that a company makes on its investment. Another way to calculate ROI is to divide a company's net profit by its total assets. This gives you the return that a company makes on its assets. ROI is a valuable metric for businesses to track. It helps them to assess their performance and identify areas where they can improve. It also helps investors and analysts to assess whether a company is a good investment. |
Share this glosssary
