Skip to content

heraldhear

  • Blog
  • Business Services
  • Online Business
  • Subscribe
  • Home
  • Business
  • What is return on investment (ROI)?

What is return on investment (ROI)?

Posted on By admin
Business

ROI or return on investment is one of the most common buzzwords on banking ads and business magazines these days. So what really is this ROI? ROI is the most common profitability ratio evaluating the performance of a business by dividing net profit by net worth. Therefore, if your net profit is 50,000 bucks while you’re total assets amount to 25,000 bucks, your ROI would be 2 or 200 percent.

Comparison with ordinary profit
Keep this in mind that ROI however isn’t the same as your normal profit. Return on investment is calculated on the money which you might have invested in one or more companies and the return which you receive on that same amount based on the net profit of the business.

This ROI is different from profit in the sense that profit only measures the performance of business. Also, you must not mix up ROI with the return on the owner’s equity. The latter is a completely separate concept. Only in the case of sole proprietorships will equity equal the total investment or assets of the business.

Use
Again, ROI could be used in multifarious ways to understand the profit-making in your business enterprise. Say, you could gauge the performance of your pricing policies, capital investment and so forth on the basis of ROI. In fact, ROI could also be used within the company by dividing net income, interest and taxes by total liability that will give you an idea of the rate of earnings of total capital under employment.
Hence, as a measure of the company’s performance, return on investment could be effectively used to understand the efficiency of different investments which are undertaken. In purely economic sense, this is the way you consider your profits in relation to the investment of your capital.

Post navigation

❮ Previous Post: Feel the experience with Firm Sculpting Cream
Next Post: Importance Of Marriage And Wedding Dvds ❯

Recent Posts

  • Why Do Punters Room Stakes Inside of On-line Casinos?
  • What are the tax services? From where to get the right advice?
  • Why you should go to a Plumbing technician to carry out Water heater Maintenance
  • Seizure Wedding Footage Albums Via The Professional Photographer
  • Basement finishing- beyond the basic bedroom

Archives

  • March 2023
  • June 2020
  • May 2020
  • February 2020
  • December 2019
  • June 2019
  • April 2019
  • February 2019
  • December 2018
  • October 2018
  • June 2018
  • April 2018
  • March 2018
  • January 2018
  • February 2017
  • January 2017
  • September 2016
  • June 2016
  • March 2016
  • February 2016
  • January 2016
  • November 2015
  • September 2015
  • July 2015
  • June 2015
  • April 2015
  • February 2015
  • July 2014
  • March 2014
  • February 2014
  • May 2013
  • February 2013
  • June 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • September 2011
  • June 2011
  • May 2011
  • February 2011

Categories

  • Apps
  • Arts and Entertainment
  • Blog
  • Business
  • Computer and Technology
  • Electronics
  • Finance
  • Food and Drink
  • Gaming
  • Gifts
  • Health and Fitness
  • heraldhear
  • Home
  • Internet and Business Online
  • Online Business
  • Pets
  • Real Estate
  • Shopping
  • Sports & Outdoors
  • Travel
  • Travel 2
https://truecoveragermg.com/ https://www.supersavingstechnologies.com/ https://treasurecoastwebsitedesign.com/ https://www.casinoenlignepayant.info/ https://thepinnaclelaw.com https://thepinnaclelaw.com/personal-injury-lawyer/ https://thepinnaclelaw.com/insurance-claim-lawyer/ https://lawyerconnection.net/personal-injury-lawyer/ https://lawyerconnection.net/ https://lawyerconnection.net/insurance-claim-lawyer/ https://www.istitutomarangonimiami.com/ https://buketbyoneday.ru/ https://store.ldsreliance.com https://radiantwellnesscenter.com/ https://www.mobidownloader.com/ https://aviclear.com/ https://www.goodfoodmama.com/ https://mushroomchocolatebars.net https://howtheydie.com/ https://www.irisdrivingschool.co.uk/ https://mcdonoughpressurewashing.com/how-can-i-prep-my-home-exterior-for-pressure-washing/ https://yacssyive.blob.core.windows.net/yacss77/conversiobot%20reviews/conversiobotreviews/conversiobot-review-conversiobot.html https://picc.it/ https://thedayherald.com/ https://www.howtofinance.online https://aaagaragedoorsaz.com/ https://globaltripnews.yivesites.com/ http://spotfreesolarcleaning.com/ https://www.aprestamos.es/ https://www.mintz360.com/ https://www.primepureglobal.com/ https://www.primepureglobal.com/collections/gender-reveal https://www.primepureglobal.com/collections/baby-shower https://www.adler-schluessel.de/ https://www.talentleopard.com/ https://www.insurancexo.net/post/car-rentals-avoid-common-mistakes https://ilovepdf.me/ https://www.casinowinners.asia/ http://kliknet.pl/ https://www.zenambience.com/ https://heavymetaloff-road.com https://parfum.social https://tampabayroofing.com/ https://www.marlolaz.com/ https://lasvegasgaragedoor.repair/ https://knowyourvape.com/ https://purely-positive.com/ http://exam.cyou https://duodor.nl/ https://woomoment.nl/ https://www.l-echo.info https://netizensgalaxy.com https://thephotovoltaics.com https://www.inshura.com/ https://digittrac.com/ https://aviclear.com/ https://perthhomecleaners.com.au/window-cleaning https://free-3dtextureshd.com/ https://digitaltendances.com/ https://207laser.com https://www.wpcdoors.com/ https://northcountryoverheaddoor.com/ https://villamoversindubai.com/
  • Contact Us
  • Privacy Policy
  • Terms and Conditions