Chapter 11
Return on investment (ROI)
- Why: To better understand your financial performance, especially the efficiency of investments
- What: To measure the proportion of revenue that is left after removing all costs of operating the business
- When: When you want to assess or compare the efficiency of investments
- The question this indicator helps you to answer: to what extent are our investments generating a financial return?
Why does this KPI matter?
Return on investment (ROI), also referred to as the rate of return or rate of profit, is a financial performance measure that is used to evaluate the efficiency of an investment (after or during the investment period) or to compare the efficiency of a number of different investments (before capital ...
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