return on investment is a single comprehensive measure that contains everything happening with in the organization, explain the statement with imaginary figures
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Return on investment simply means the measures used to evaluate the efficiency of an investment. Return on investment(ROI) formula
ROI=Gain from investment Less cost of investment devide by cost of investment.
i.e
For example, suppose Collins invested $1,000 in Ever ready, in 2010 and sold his shares for a total of $1,200 a year later. To calculate the return on his investment, he would divide his profits ($1,200 - $1,000 = $200) by the investment cost ($1,000), for a ROI of $200/$1,000, or 20%.
ROI=Gain from investment Less cost of investment devide by cost of investment.
i.e
For example, suppose Collins invested $1,000 in Ever ready, in 2010 and sold his shares for a total of $1,200 a year later. To calculate the return on his investment, he would divide his profits ($1,200 - $1,000 = $200) by the investment cost ($1,000), for a ROI of $200/$1,000, or 20%.
santy2:
The return on investment formula is: ROI = (Net Profit / Cost of Investment) x 100. This will give you a percentage. It measures a company's profitability or the efficiency of its investments.
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