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how we calculate ROI?

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Question added by Deleted user
Date Posted: 2013/06/16
Sajdah Shaheer
by Sajdah Shaheer , Accountant , Metac General Contracting Company

Return on investment (ROI) is the concept of an investment of some resource yielding a benefit to the investor.
As a performance measure, it is used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.
In purely economic terms, it is one way of considering profits in relation to capital invested.
return on investment (%) = Net profit / Investment ×100 or return on investment = (gain from investment - cost of investment) / cost of investment[1]

Mohamed Ahmed Abdelaziz Mahmoud
by Mohamed Ahmed Abdelaziz Mahmoud , Senior Accountant , Surgi Tech for Medical Supplies

ROI stands for Return On Investment, and it equals the net income divided by the average investment

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