Return on investment (ROI)

Return on investment (ROI)

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Return on investment (ROI) is a metric used to measure the profitability and effectiveness of an investment. It calculates the ratio between the net profit generated from an investment and the cost of that investment. ROI helps businesses assess the success of their marketing campaigns or other investments by determining the percentage of return they have received relative to the amount of money invested. It is a crucial indicator for evaluating the financial performance and efficiency of various business activities.