What is return on investment?
Return on investment measures the profitability of an investment relative to its cost. It shows how much return is generated for each unit invested.
Why is ROI important?
ROI helps businesses evaluate the effectiveness of investments and compare different opportunities.
How is ROI calculated?
ROI is calculated by dividing the gain from investment by the cost of investment, then multiplying by 100.
Where is ROI used?
It is used in marketing, capital investment decisions, and performance analysis.
What does a high ROI indicate?
A high ROI indicates that an investment generates strong returns relative to its cost.