What is Return on Investment (ROI)

ROI is a ratio or percentage indicator that quantifies the proportion of achieved gains with respect to the investment costs. It is a profitability indicator that could be used by investors as a quick means to measure the relative success of their investment, by comparing it for example to other investments or a certain benchmark. A higher ROI means that greater profits were achieved. One drawback of using ROI is that it does not consider the time it takes to achieve profits.

Return on Investment (ROI)

ROI is a profitability indicator, calculated as the profits made thanks to an investment over the costs incurred.

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