Return on Investment Analysis

Return on Investment (ROI) Analysis is a financial metric used to evaluate the efficiency of an investment. It measures the return generated relative to the initial cost. To calculate ROI, you subtract the investment's cost from the profit earned, then divide that number by the cost, and multiply by 100 to get a percentage. A higher ROI indicates a more profitable investment. This analysis helps individuals and businesses make informed decisions by comparing the potential gains from different investment opportunities. Essentially, it answers the question: "Is this investment worth my money?"