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The main disadvantage is that you are using a profit figure which could be wildly inaccurate - if that figure is inaccurate, then the ROI figure is also inaccurate.

Another disadvantage is that it doesn't take into account how large the investment is - it gives you a percentage, and this percentage will be the same whether you are talking about a few pounds or millions of pounds. For example, if you look at project A and project B, and they both have an ROI of 15%, but project A requires an investment of £1000, and project B requires £10, then obiously you will make more money from project A, but ROI doesn't tell you this.

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14y ago

What else can I help you with?