It's a human nature that if he devotes/(invest) his resources he looks for an healthy outcome (Return) i.e., he wants return on what he had invested. In short it is ROI. (RETURN ON INVESTMENT) A Businessman looks his healthy ROI as how much Profit he had gained from his deployed resources (Health / Wealth). All businesses give returns that return can either result him profit or loss. A smart & successful investor will always care about security of his investment along with desired results. The percentage of return depends on the type of business you have chosen. High risk gives high returns and the low risk gives low returns. Taking example of Our Company an ROI greater than 24% is an healthy ROI from both angles. But an exceptionally high ROI (40% etc.) can lead to the fact that there is some gap which is in reverse direction. ROI can be calculated as follows: (Example of our R.S. /R.D.) 1. ROI = (NET PROFIT /Net INVESTMENT)*100 Net Profit = Gross Profit - Expenditure 2.ROI = No. Of Rotations * Net Profit Margin No. Of Rotations = Turn Over / Investment Net Profit Margin = Gross Profit - Expenditure Gross Profit = %Gross Margin * Turn Over Investment: Paid up Stock, Credit, Claims Gross Profit: Gross Profit stands for (Total Turn Over * % Gross Margin) Expenditure: Expenditure covers each & every money spent in relation with that business. That can be 1. Staff Salary 2. Office Expenses (Tele, Elec., Rent, Insurance, Printing etc.) 3. Distribution Cost 4. Any Discount 5. Miscellaneous Taking example : 1. A TO Z Agency A Sales and Turnover 1 Concern Sec Sales (year 2005) (Rs.lakh) 98 2 Gross Margin @ 4.76% (in Rs.lakh) 4.6648 B Investment (in Rs.lakh per month) 1 Stock 4.01 2 Credit 3.6 3 Avg Claims 0.12 Total 7.73 Total Investment (in weeks) 3.79 4 CET (in days) 5 Net Investment (in weeks)3.07 Net Investment (in Rs.lakh/month) 6.27No. of Rotations 15.6 C Cost Elements (in Rs. per month) 1 Salesmen - Salary + TA/DA + misc4500 2 Other Staff Cost a Godown keeper 1000 b Computer operator 0 c Any other staff 0 Total 10003 Distribution cost a Cost of Diesel 0 b Cost of Oil 2000 c Vehicle Maintenance 1200 d Vehicle Driver - Salary + TA/DA 2800 e Delivery Boy - Salary 2000 f Cost per dispatch 0 g Any other delivery costs 650 Total 8650 4 Office Expenditure a Telephone and Fax 700 b Electricity 300 c Printing and Stationery 200 d Rent and Insurance 500 e Miscellaneous 0 Total 1700 5 Discount to Trade 8100.00 Total operating Costs (Annualised)2.87 Net Margin (in Rs.lakhs) 1.79 Net Margin % 1.83 Return on Investment 28.6ROI of A TO Z Agency comes out 28.6% which is an healthy ROI. REGARDS NARESH SINGH LUXOR PARKER
The ROI is a measure of the efficiency of an investment. ROI is a term used in the financial world, it means return on investment.
return on investment
Return on investment is calculated by subtracting investment capital from the return, taking into account inflation, taxation and the time frame involved.
My company has an consistent ROI of 30%. I'm considering a new investment with an ROI of 25% over a one-year period. Is it a wise choice?
Return on investment, or ROI, is almost always focused on financial returns that result from an investment. Returns are classified as tangible when there is a direct gain/loss or as intangible when the return is a soft gain/loss. This can be an investment like purchasing a stock or a home which increasing in value or pays a dividend or provides rental income. It can also be a business return on an investment in a new technology which produces revenue or cuts expenses.
Return On Investment
Return on Investment
Return on investment.
There are so many variables but simply put It is Money Earned-Investment/Investment=ROI
The ROI is a measure of the efficiency of an investment. ROI is a term used in the financial world, it means return on investment.
rotation roi
return on investment
Definition of 'Return On Investment - ROI'A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. The return on investment formula:
Return on investment is calculated by subtracting investment capital from the return, taking into account inflation, taxation and the time frame involved.
Return on investment is the amount that you get back for investing in something. The formula is ROI=(Profit *100)/(Investment * number of years.)
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Return of investment is an essential aspect of the business. Keeping track of ROI is crucial for success with all your marketing activities. The benefit of tracking ROI(Return on investment) is that the business managers can track what marketing strategies are working for them and what processes need revamping. Every marketer feels pressure to prove the effectiveness of their marketing expenses.