E-COM NEXUS

- ROI is an abbreviation for "Return on Investment."
- It is a financial indicator used to assess the profitability and efficiency of investments.
- ROI relates profits or losses to the cost of the initial investment.
- ROI is calculated as ((Net Profit from Investment) / Initial Investment) * 100.
- Net Profit from Investment: Earnings less costs and expenses.
- Initial Investment: The sum of money initially invested.
- A positive ROI means that the investment generated more profit than it cost.
- Negative ROI: The investment was a loss.
- Found in business, marketing, real estate, and other fields.
- Aids in the prioritisation of investments with higher potential returns.
- Does not take into account the time worth of money, duration, or dangers.
- Frequently used in conjunction with other metrics to improve decision-making.