Tagastustasusid

Tagastustasusid, also known as return on investment (ROI), is a financial metric used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. It measures the amount of return generated on an investment relative to the amount of money invested. The formula for ROI is:

ROI = [(G - I) / I] x 100%

where G is the gain or profit from the investment, and I is the initial investment. The result is expressed as a percentage or a ratio.

ROI is commonly used in business and finance to assess the performance of an investment, project, or business venture. A higher ROI indicates a more profitable investment. However, it's important to note that ROI does not account for the time value of money, risk, or liquidity. Therefore, it should be used in conjunction with other metrics for a comprehensive evaluation.

In practice, ROI can be calculated for various types of investments, including stocks, bonds, real estate, and business ventures. It can also be applied to operational efficiency within a business, where the initial investment represents the cost of a process or project, and the gain represents the savings or improvements achieved.

Despite its limitations, ROI remains a widely used tool in finance and business due to its simplicity and ease of understanding. It provides a clear and straightforward measure of the profitability of an investment or project.