Return on Investment (ROI) is a financial performance metric used to evaluate the efficiency or profitability of an investment, expressed as a percentage. It is calculated by dividing the net profit from an investment by the initial cost of the investment, often referred to as the “roi unit.” This metric aids in comparing the profitability of multiple investments.
Get Your FREE Exam Secrets Cheat Sheet!
Plus a 3-Part CMA Video Course
82,000+ accounting and finance pros got their free CMA cheat sheet.
Get yours too, today!