Return of investment (ROI) is a financial metric that measures the profitability of an investment. It is calculated by dividing the net profit from an investment by the total cost of the investment. ROI is expressed as a percentage, and it can be used to compare the profitability of different investments.
ROI is an important metric for investors because it helps them to make informed decisions about where to invest their money. A high ROI indicates that an investment is profitable, while a low ROI indicates that an investment is not profitable. ROI can also be used to track the performance of an investment over time. By monitoring ROI, investors can see how their investments are performing and make adjustments as needed.