ROI analysis

ROI, or Return on Investment, analysis measures the profitability of an investment by comparing the gains made to the costs involved. It helps determine whether the investment was worthwhile by calculating the percentage return. A higher ROI indicates a more successful investment, while a lower or negative ROI suggests less favorable results. Businesses use ROI analysis to decide where to allocate resources effectively, ensuring that their investments contribute positively to growth and profitability. Essentially, it’s a way to evaluate the efficiency and success of an investment, guiding better decision-making.