Return on Investment (ROI) Explanation

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Return on Investment (ROI)

What is Return on Investment (ROI)?

ROI measures the profitability or efficiency of an investment, showing the return relative to the cost.

Explanation

Formula:

ROI = (Net Profit / Investment Cost) × 100

It helps evaluate investment decisions and prioritise resource allocation.

Practical Example of ROI

A business spends £20,000 on a new marketing strategy and generates £30,000 in profits from it, resulting in a 50% ROI.

How Bizcap Can Help:
Bizcap can provide fast access to funds to pursue high-ROI projects, helping you grow profits without missing time-sensitive opportunities.

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