Financial Glossary

Return on investment

Definition

ROI is a financial metric that evaluates the profitability of an investment relative to its cost, calculated by dividing the net profit by the investment cost.

Related Services

Investment consulting, financial analysis, and strategic planning help businesses maximize ROI by identifying high-return opportunities and minimizing risks.

Problem and Application

ROI is a key measure for assessing the effectiveness of investments, guiding businesses in decision-making and resource allocation.

Conclusion

ROI is essential for evaluating the financial success of investments and ensuring that resources are used efficiently to generate returns.