ROI

Return on Investment (ROI) is a financial metric used to evaluate the profitability and efficiency of an investment or business venture. It measures the ratio between the net profit or benefits gained from an investment and the initial cost or investment amount. A positive ROI indicates that the investment has generated more profit than the initial investment, while a negative ROI implies a loss. ROI is a crucial tool for decision-making, allowing businesses to assess the viability of potential projects, marketing campaigns, and other investments. By calculating ROI, companies can prioritize projects that offer the highest returns and allocate resources strategically to maximize profitability.