What is ROI and why is it essential for your decisions?

ROI (Return on Investment) measures the profitability of a project by comparing the gains generated to its initial cost.

What is ROI (Return on Investment)?

ROI, or Return on Investment, is a key indicator that assesses the financial performance of an investment. It compares the net gain generated to the initial cost, expressed as a percentage, to measure the effectiveness of an expense.

Used across all sectors, ROI can be used to justify budgets, prioritize projects, or optimize investments. For example, a project that generates €150,000 at a cost of €100,000 has an ROI of 50%, indicating significant profitability.