Used correctly, ROI refers to the level of efficiency of an investment (ie how hard the investment ‘worked’ for us), usually expressed as a percentage where a higher percentage reflects greater efficiency. ROI is calculated by subtracting Total Expenditure from Revenue and then dividing this by Total Expenditure. In non-financial circles however, ROI often simply means the same as Profit (see above).
By Success Hub|2019-12-31T10:55:29+00:00December 31st, 2019|Glossary of Terminology|Comments Off on Return on Investment (ROI)