ROI Analysis
ROI Analysis stands for Return on Investment Analysis, a financial metric used to evaluate the profitability of an investment. It measures the gain or loss generated relative to the amount invested, expressed as a percentage. This helps businesses and individuals determine whether an investment is worthwhile and compare different investment opportunities.
To calculate ROI, the formula is: (Net Profit / Cost of Investment) x 100. A positive ROI indicates a profitable investment, while a negative ROI suggests a loss. ROI Analysis is commonly used in various sectors, including business, marketing, and real estate, to guide decision-making and resource allocation.