Last Updated on 2020-01-21 by Admin
Return On Investment (ROI) is a ratio which measures the gain or loss relative to the original investment. Usually expressed as a percentage and typically used for personal financial decisions, to compare a company’s profitability or the efficiency of different investments.
$$ Return\;On\;Investment\;(ROI) $$
$$ = \left (Return \over Investment \right ) \times 100\%$$
$$ = \left (Net\;Income \over Investment \right ) \times 100\%$$
$$ = \left (Gross\;Profit − Expenses \over Investment \right ) \times 100\%$$
$$ = \left (Gross\;Profit − Expenses \over Stock + Market\;Outstanding + Claims \right ) \times 100\%$$
ROI = (Net Income + Current Value – Original Value) / Original Value * 100
