What is ROI? Learn How to Calculate Return on Investment

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We know that in these times, when economic crises, defaults and other uncertainties haunt practically all companies in the market, managing to set aside capital to invest in any part of the business is a difficult task. In times like these, any and all resources must be used with great caution. After all, any misstep can result in serious cash flow losses.

Given this situation, how can you know that the amount you japan phone number list in marketing actions or in some financial investment is giving the return your company is looking for? The answer to this question lies in ROI. Do you want to know what ROI is and understand how this indicator can help with the financial management of your business? Then read on!

What is ROI?
ROI is an acronym used for the English term “Return On Investment” which, in literal translation, means “Return on Investment”. As the name suggests, this indicator was developed to identify the profit or loss related to a given application of resources.

This metric can be used both for investments in traditional financial applications, such as purchasing real estate, shares or government bonds, and for any other type of decision made in the hope that there will be some subsequent financial return.

In the business environment, ROI can be used to measure the returns generated by marketing actions, paid media, new software, employee training and several other aspects.

In this way, when using ROI, a good financial manager will be able to have the necessary insights to know which investments are or are not worth maintaining, in addition to optimizing those that are already bringing positive results to the company and cutting those that bring little return to the company's operations.