A dry creek, that fills with rois chocolate after rainfall. Note: Some of these forms may be hypothetical. Not every possible mutated form of every word actually occurs. This page was last edited on 20 January 2023, at 00:10.

By using this site, you agree to the Terms of Use and Privacy Policy. Return on investment, or ROI, is a mathematical formula that investors can use to evaluate their investments and judge how well a particular investment has performed compared to others. If an enterprise has immediate objectives, including getting market revenue share, building infrastructure or positioning itself for sale, a return on investment might be measured in terms of meeting one or more of these objectives rather than immediate profit or cost savings. There are multiple methods for calculating ROI. 100 for a quotient, or answer, of 2. Because ROI is most often expressed as a percentage, the quotient should be converted to a percentage by multiplying it by 100.

10,000 into a venture without incurring any fees or associated costs. 200 in net profits generated in the first example. Although the first investment strategy produced fewer dollars, the higher ROI indicates a more productive investment. There are numerous other ways to calculate ROI, so when discussing or comparing ROIs between departments or businesses, it is important to clarify which equation was used to determine the percentage. Each equation may measure a specific set of investments.

ROI is shown as a percentage instead of a ratio for ease of understanding. How do you interpret ROI calculations? ROI can be used to gauge different metrics, all of which help determine how profitable a business is. To calculate ROI with the most accuracy, total returns and total costs should be measured. When ROI calculations have a positive return percentage, this means the business — or the ROI metric being measured — is profitable. Meanwhile, if the calculation has a negative ROI percentage, that means the business — or the metric it is being measured against — owes more money than what is being earned.