Return on Investment | Sponsors Directory

Return on investment (ROI) is a financial ratio that calculates the net income or profit generated by an investment, relative to its cost. It is a widely used metric to evaluate the efficiency of an investment, compare the performance of different investments, and make informed decisions about resource allocation. With a high ROI, an investment's gains are favorable compared to its costs, indicating a successful investment. ROI is a dimensionless quantity, making it a versatile tool for investors, businesses, and individuals to assess their investments. The formula for ROI is: ROI = (Net Income / Cost) x 100.