ROI is an important measure of an investment's performance but it has some drawbacks. Reviewed by Margaret James Fact checked by Jared Ecker Return on investment (ROI) is a ratio that measures the ...
Return on investment is a metric that measures the amount of profitability earned on a particular investment by comparing its costs to its returns. The purpose of any business is to earn a profit, ...
ROI measures investment growth efficiency, calculated as Profit/Cost. Using ROI, investors compare asset performance to optimize financial strategies. Unlike ROI, IRR and ROE include factors like cash ...
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