In the dynamic and competitive landscape of today's business world, companies are constantly seeking ways to maximize their investments and ensure sustainable growth. One essential tool in this quest for success is the measurement of Return on Investment (ROI). Understanding and effectively measuring ROI is crucial for making informed business decisions, measure roi optimizing resource allocation, and ultimately driving long-term profitability.
What is ROI?
Return on Investment (ROI) is a financial metric that evaluates the profitability of an investment relative to its cost. It is expressed as a percentage and provides a clear insight into how efficiently a particular investment is generating profits. The formula for calculating ROI is: