- Definition: Is a ratio between the net profit and cost of investment resulting from an investment of some resources. A high ROI means the investment’s gains favorably to its cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments.
- Example: If you buy a hotel for $10 million and sell it for $12 million, the ROI is 20% ($2 million gain divided by $10 million initial investment).
References: https://en.wikipedia.org/wiki/Return_on_investment