Return on investment ratio analysis determines a company's efficiency in investments. Simply put, it shows how profitable an investment will be. Several ratios within this category are frequently ...

Return on investment is a simple ratio that divides the net profit (or loss) ... Here are two ways to represent this formula: ROI = (Net Profit / Cost of Investment) x 100. ROI = ...

Investors use the return on assets ratio formula to evaluate a company. The greater a return, the higher valuation investors are likely to provide.

Financial ratios are relationships determined from a company’s financial information and used for comparison purposes. Examples include such often referred to measures as return on investment ...

The basic calculation for return on investment is net profit divided by total investment. This formula provides business owners with a percentage for measuring their company's financial performance.

The ROI formula is easy to calculate and helps in comparative analysis. ... or a ratio of $2 gain for every $10 spent. ... Return on investment does not factor in time.

Return on assets is a ratio that measures the net income of a company in relation to its period-end assets over the trailing 12 months. It provides insight into how efficient management has been ...