Question

What is return on investment (ROI)?

Answer 1

Return on investment is the ratio between that packet and cost of investment resulting from investment of some sources. A high ROI mean the investment gains favorably to its cost.

Hope this helps:) good luck!

Answer 2

We use the return on investment (ROI) to measure the capacity of an investment, or to compare it among other investments.

During this type of investment, the money invested is compared against the benefits obtained from said investment.

There is a formula to calculate this, which will result in a percentage:

ROI = Margin on sales X asset turnover.

Now let's clarify what each of these things is:

Margin on sales: it is the result obtained from the calculation of profits / sales.

Asset rotation: this is the result obtained from the calculation of average total sales / assets.