Ratio of Net Profit over amount of initial investmentOne of the efficiency metrics of Financial Investment defined as ratio of Cash Return over amount of Initial Investment:
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\rm ROI = \frac{NetCash \ Return − Cost \ of \ ProfitInvestment}{Initial \ Investment} |
where
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ROI is normally presented in percentage (120%, 300%, ...).
Alternatively it can be presented as multiplier of Initial Investment:
1X | Cash Return are equal to Initial Investment |
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2X | Cash Return are twice higher than Initial Investment |
3X | Cash Return are three times higher than Initial Investment |
... | ... |
See also
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Economics / Investment / Financial Investment / Financial Investment Metrics