But what does a return on investment actually mean?
The ROI shows the outcome of any particular investment and is shown as a percentage. This measurement can be used for personal financial decisions or to compare a company’s profitability. The return on investment can be calculated with an easy formula.
When using the ROI measurement, note that the time value is not taken in consideration. For instance it’s more preferable to get a 15% return in 6 months than a 15% return in two years.
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