ROI

ROI, or return on investment, is a financial metric that is used to measure the profitability of an investment. It is calculated by dividing the net profit of an investment by the initial cost of the investment, and expressing the result as a percentage. For example, if an investment of $100 generates a net profit of $20, the ROI would be 20/100 = 0.2, or 20%. ROI is a useful metric for evaluating the performance of an investment, because it allows investors to compare the profitability of different investments on a common basis. A higher ROI indicates a more profitable investment, while a lower ROI may indicate that the investment is less profitable or may even be losing money.