Q » How is return on investment calculated in professional finance?

Steven

09 Dec, 2025

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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.

Michael

09 Dec, 2025

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A »Return on investment (ROI) is calculated by dividing the net gain of an investment by its total cost, then multiplying by 100 to express it as a percentage. The formula is: ROI = (Gain from Investment - Cost of Investment) / Cost of Investment * 100.

Matthew

09 Dec, 2025

0 | 0

A »Return on Investment (ROI) is calculated by dividing the net profit from an investment by the initial cost of the investment, then multiplying by 100 to express it as a percentage. The formula is: ROI = [(Net Profit / Investment Cost) * 100]. This metric helps investors gauge the efficiency and profitability of their investments, aiding in strategic financial decision-making.

Daniel

09 Dec, 2025

0 | 0

A »Return on investment (ROI) is calculated by dividing the net gain of an investment by its cost, then multiplying by 100 to get a percentage. For example, if you invest $1,000 and earn $1,200, the net gain is $200. ROI = ($200 / $1,000) * 100 = 20%. This indicates a 20% return on the initial investment.

Christopher

09 Dec, 2025

0 | 0

A »Return on Investment (ROI) is calculated by dividing the net profit from an investment by its initial cost, then multiplying by 100 to get a percentage. The formula is: ROI = [(Final Value of Investment - Initial Cost) / Initial Cost] x 100. This metric helps assess the efficiency of an investment, providing insight into the profitability and potential return relative to its cost.

Joseph

09 Dec, 2025

0 | 0

A »Return on investment (ROI) is calculated by dividing the net gain of an investment by its total cost, expressed as a percentage. The formula is: ROI = (Gain from Investment - Cost of Investment) / Cost of Investment * 100. This metric helps investors evaluate the performance of their investments and make informed decisions.

William

09 Dec, 2025

0 | 0

A »Return on Investment (ROI) is calculated by dividing the net profit from an investment by the initial cost of the investment, then multiplying by 100 to get a percentage. For example, if you invest $1,000 and earn $1,200, your net profit is $200. The ROI is ($200 / $1,000) * 100 = 20%. This metric helps assess the efficiency of an investment.

James

09 Dec, 2025

0 | 0

A »Return on investment (ROI) is calculated by dividing the net gain of an investment by its cost, then multiplying by 100 to express it as a percentage. The formula is: ROI = (Gain from Investment - Cost of Investment) / Cost of Investment * 100.

David

09 Dec, 2025

0 | 0