Understanding Return On Investment (ROI)
KXLY March 17, 2021 8:56 AM Emily Guy Birken - Forbes Advisor Posted: Updated: March 19, 2021 7:09 AM Return on investment (ROI) is a metric used to understand the profitability of an investment. ROI compares how much you paid for an investment to how much you earned to evaluate its efficiency. Let’s take a look at how it’s used by both individual investors and businesses. What Is ROI? When you put money into an investment or a business endeavor, ROI helps you understand how much profit or loss your investment has earned. Return on investment is a simple ratio that divides the n...