Return on investment refers to a calculation showing the value of expenditures on an organization's activities. Return on investment (ROI) is a measure of the monetary benefits obtained by an organization over a specified time period in return for a given investment.
Return on Investment is a traditional financial measure based on historic data. ROI is a backward-looking metric that yields no insights into how to improve business results in the future. ROI may be expressed mathematically as follows:
(total benefit - total costs) = ____ X 100 = ROI total costs
