Return on Investment (ROI) is a fundamental financial metric used to evaluate the profitability and efficiency of an investment or business endeavor. It measures the ratio of the net profit generated from an investment relative to its cost. ROI provides insights into the effectiveness of resource allocation and helps decision-makers assess whether an investment is yielding positive returns.
Return on Investment (ROI) is a critical financial metric used to evaluate the efficiency and profitability of investments. It enables businesses to assess the value generated from their expenditures and make informed decisions about resource allocation and strategic planning. By calculating and analyzing ROI, organizations can optimize their investment strategies, focus on initiatives with high potential returns, and drive sustainable growth and profitability.