Welcome to Welldone (China) Industry Liminted!
        
Your present position:Home  >  News  >  Industry dynamics Industry dynamics
What is 'Return on Investment (ROI)
Date: 2018-12-15 16:28:14

Everyday Knowledge : No. 4 
* What is 'Return on Investment (ROI) 
Return on Investment (ROI) is a performance measure, used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. ROI measures the amount of return on an investment, relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio.

The return on investment formula:

ROI = Return of Investment / Cost of Investment

ROI is a popular metric because of its versatility and simplicity. Essentially, ROI can be used as a rudimentary gauge of an investment’s profitability. The calculation is not complicated, relatively easy to interpret, and has a range of applications. If an investment’s ROI is not positive, or if other opportunities with higher ROIs are available, these signals can help investors eliminate or select the best options.

With #Welldone we help you to understand completely your expected ROI in the study phase and support you to achieve it by strong #management_system