Q » How is return on investment calculated in professional finance?
09 Dec, 2025
A » Return on Investment (ROI) is calculated by dividing the net profit from an investment by the initial cost of the investment, and then multiplying the result by 100 to get a percentage. The formula is: ROI = [(Net Profit / Cost of Investment) x 100]. This metric helps assess the efficiency and profitability of investments by comparing the returns relative to the investment's cost.
09 Dec, 2025
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