GENERAL KNOWLEDGE

Detailed explanation-1: -Return on investment, or ROI, is a mathematical formula that investors can use to evaluate their investments and judge how well a particular investment has performed compared to others. An ROI calculation is sometimes used with other approaches to develop a business case for a given proposal.

Detailed explanation-2: -Return on Investment (ROI) is a popular profitability metric used to evaluate how well an investment has performed. ROI is expressed as a percentage and is calculated by dividing an investment’s net profit (or loss) by its initial cost or outlay.

Detailed explanation-3: -Return on investment (ROI) or return on costs (ROC) is a ratio between net income (over a period) and investment (costs resulting from an investment of some resources at a point in time). A high ROI means the investment’s gains compare favourably to its cost.

Detailed explanation-4: -ROI-Based Valuation Method ROI means return on investment, and it tells you how much of a return you’ll get in exchange for investing in a company. In other words, how much money you’ll make once the company sells. Find the ROI by first calculating your net profits, then dividing your profits by your costs.

Detailed explanation-5: -ROI measures the percentage return on an investment, while ROE measures the percentage return on the equity that has been invested. In other words, ROI measures the “profitability” of an investment, while ROE measures the “efficiency” of that investment.