If you ever wondered why we learned those complex mathematical formulas and concepts in
school and questioned their utility then here's your answer! You need to have thorough
knowledge about these concepts to do good business.
Return on Investment (ROI), as the name suggests, is basically a method to analyse and evaluate the return one has received on the investments made. It is calculated by applying mathematical formula. This is a crucial step for any business as it gives a clear picture about the amount of profit a business is making. It is not merely an overview about the business performance such as that derived from various other methods, it involves a comprehensive study and provides the exact facts and figures. It helps business owners understand as to where they stand and help them determine whether to increase business investment or lower it.
ROI management involves dealing with intricate mathematical formula and only experts in the field can derive at the right result.