Return on Investment (ROI) 

Return on Investment (ROI) is one of the most essential financial metrics used to measure the efficiency or profitability of an investment. It evaluates the return generated on an investment relative to its cost, helping businesses and investors compare various investment opportunities. 

Formula: 

ROI (%) = ((Net Profit from Investment - Investment Cost) / Investment Cost) × 100    

A positive ROI signifies a profitable investment, while a negative ROI indicates a loss. ROI can be applied to capital expenditures, marketing campaigns, acquisitions, or any financial outlay with expected returns.