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What is Understanding Return on Investment (ROI) about?

ROI is a performance measure used to evaluate the efficiency of investments by calculating return relative to cost. It is calculated by taking the return or benefit and dividing by the cost of the investment. A higher positive ROI indicates a more efficient investment. ROI can be used to compare different investments but has limitations when investments have different timeframes. Recent developments include social ROI which considers broader social and environmental impacts beyond financial returns.

Author

Darlene Sarcino

Language

EN