Return on Investment (ROI) is the benefit to an investor resulting from an investment of some resource (soccer predictions). A high ROI means the investment gains compare favorably to investment cost. As a performance measure, ROI 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.
For a single-period review, divide the return (net profit) by the resources that were committed (investment):
- return on investment = Net income / Investment
- Net income = gross profit − expenses.
- investment = stock + market outstanding + claims.
- return on investment = (gain from investment – cost of investment) / cost of investment