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| Topic: |
Miscellaneous
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| Number of pages / Number of words: |
19 / 5138 |
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ROI is known as a profitability ratio, because it provides information about management's performance in using the resources of the small business to generate income.
A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments...
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To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.
Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken...
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