How to Calculate ROI (Return on Investment)

This video shows how to calculate ROI.
ROI, which stands for Return on Investment, is calculated by dividing income (profit) by the amount of capital invested. Thus, if a department of a large firm had income of $10 million and used $50 of capital, the ROI of the department would be 20%.
ROI is a frequently used measure of profitability. If two divisions of a firm have a similar level of profit but one of the divisions uses a lot more capital to achieve the profit, the ROI will show that the division achieving the same profit with less capital is making better use of its resources.
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[@gracesplanet8915]

Edspira I just want to say THANK YOU VERY MUCH. I cant stop consuming your videos. You explain this very easily to understand. Keep up the good work.

[@davidlancer6237]

Where was this video when I was trying to understand what ROI means? Lol. It's been a great investment journey regardless. Thanks to my managerial personnel. I've garnered so much experience as well as grown my cumulative ROI.

[@catherinecoins6547]

For me portfolio management has(and will always be) a tool with which I use to articulate the right span of trade;either long term or short term,and the securities to Invest in for a greater chance at profit making,because I tend to always invest and hold for long.

[@honglien5045]

Am from Vietnam, and it's been difficult to Navigate the market, am a beginner. What steps did you take to get your ROI to grow?

[@davidlancer6237]

First of,I watched some videos on RUclips, made some demo trades,so I wasn't earning for close to 3 months or so,that ended when I got an info on managerial services by Benjamin Fredrick.

[@davidlancer6237]

Ben is my current manager,he's an independent Broker under the FINRA licencing body.

[@davidlancer6237]

Benfredricky@ gmai l C0m

[@MrBob2212]

This is the best video on RUclips explaining this. So simple thanks.

[@atheekfareed4691]

Yet another example of the purpose (why) of something before we get to what that something is. Excellent presentation.

[@ummerfayyaz3288]

U made it look so easy. thanks a lot

[@hassanhafez6675]

I love this guy. Thank you, Sir.

[@captainjules4444]

Great explanation! Thank you

[@zerogravityrelaxation8782]

Thank you for explaining this

[@eddiedutoit]

Thank you for the illustrations... Really helps as one can confuse it with ROE very easily.
In summary, ROI is calculated over deviding the innitial investment capital over the annual operating profit that should always go up to illustrate that a business performs well, and for ROE it is calculated by the amount of equity employed devided over a end selling price. Correct? Hopefully

[@batoolhijjawi3114]

GREATE video, THANKS

[@maheshbetala9445]

Thank you

[@kajalahuja112]

Nice 👌

[@dmitriydotsenko6896]

What if after making an initial investment of 10 USD I had to pay crazy fees of 100 USD. Will "invested capital" in your formula include those 100 USD? What if those people in your presentation used accrual method of accounting? They shipped goods for X amount and registered that amount as their revenue. Unfortunately, the buyer never paid that amount to them, so they never received money. What does your formula calculate - their phantom revenue or cash inflow which is 0?

[@rh_mhmmd]

Does Tax and Interests considered as invested capital as well in calculating ROI ?

[@Alfosan2010]

I always knew cats are the future, humans are obsolete and dogs are so mainstream.

[@ahmedramis7541]

Hi! Nice video you have there! Hope you wont mind me sharing.. have you tried " Vidadsmedia Real income "? (should be on google...have a look)? My cousin had some services with them and was impressed by their incredible treatment when they shared their opinion about generating real income !

[@sunya941]

so what is capital?

[@marvinbiesenbach1936]

Thumbs down cause cats shouldnt wear clothes.