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 = ...

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 ...

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

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 ...