Analyze ROI and CAGR in Excel (Return on Investment vs Compound Annual Growth Rate)

Both measure the return of an investment over time, but what is the difference between CAGR and ROI? Watch this video next • GAAP Case Study: Bank ...
Supporting Details
✅ Return on Investment (ROI) is a financial metric used to evaluate the profitability of an investment. It measures the return or gain on an investment relative to its cost. ROI is commonly used in business to compare the profitability of different investments or to assess the potential returns from a new project.
✅ The Compound Annual Growth Rate (CAGR) is a measure used to describe the annual rate at which an investment grows over a specified period of time. Unlike simple growth rates, CAGR accounts for the effects of compounding, providing a smoothed annual rate that assumes the investment grows at the same rate every year. We'll be using Excel to perform this calculation.
Watch this playlist to learn more about difference financial ratios: • Financial Ratios and A...
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0:09 Return on Investment
2:00 Compound Annual Growth Rate
3:34 Comparison ROI vs CAGR

[@MoneyOpulence]

Very educational presentation. Keep it up!

[@patrickbrayCPA]

Thank you 🙏