An investor purchases property A, which is valued at $500,000. Two years later, the investor sells the property for $1,000,000. We use the investment gain formula in this case. ROI … See more

ROI calculations are simple and help an investor decide whether to take or skip an investment opportunity. The calculation can also be an indication of how an investment has perfor… See more

There are many benefits to using the return on investment ratio that every analyst should be aware of. The return on investment metric is frequently used because it’… See more

While the ratio is often very useful, there are also some limitations to the ROI formula that are important to know. Below are two key points that are worthy of note. A higher R… See more