what is ROI and could you plz explain me in detail with all
calculations with proper example, that how u will calculate
ROI of a FMCG distributor.Remember that you have to explain
me in that manner that i am a fresher and u r explaining me
all the things abt ROI in proper steps that a person may
know each and everything abt ROI after ur example so
explain...
- 7 Answers
- 75245 Views
- Anmol Biscuits, Cadbury, CavinKare, Coca Cola, Cream Bell, Dabur, Ferrero, FMCG, Hindustan Unilever Limited, Idea, Mars, MTR, Nestle, Nilkamal, Pepsi, Vodafone, I also Faced
- E-Mail Answers
Answer Posted / chetan
Return on investment (ROI) measures the gain or loss generated on an investment relative to the amount of money invested. ROI is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments.
The return on investment formula is:
ROI = (Net Profit / Cost of Investment) x 100
How it works/Example:
The ROI calculation is flexible and can be manipulated for different uses. A company may use the calculation to compare the ROI on different potential investments, while an investor could use it to calculate a return on a stock.
For example, an investor buys $1,000 worth of stocks and sells the shares two years later for $1,200. The net profit from the investment would be $200 and the ROI would be calculated as follows:
ROI = (200 / 1,000) x 100 = 20%
The ROI in the example above would be 20%. The calculation can be altered by deducting taxes and fees to get a more accurate picture of the total ROI.
The same calculation can be used to calculate an investment made by a company. However, the calculation is more complex because there are more inputs. For example, to figure out the net profit of an investment, a company would need to track exactly how much cash went into the project and the time spent by employees working on it.
Why it Matters:
ROI is one of the most used profitability ratios because of its flexibility. That being said, one of the downsides of the ROI calculation is that it can be manipulated, so results may vary between users. When using ROI to compare investments, it's important to use the same inputs to get an accurate comparison.
Also, it's important to note that the basic ROI calculation does not take time into consideration. Obviously, it's more desirable to get a +15% reuturn over one year than it is over two years.
| Is This Answer Correct ? | 10 Yes | 3 No |
Post New Answer View All Answers
Which are the different elements of marketing mix?
u have 8 yrs exp y u r applyed this job y ur not appled high possition job ?
what is the meaning of trademark and patent rights in govt of india and how it is useful in marketing management? explain with suitable products.
What is marketing mix?
With whom should you partner to help support this shift to customer-centricity?
What is partnership marketing?
What steps you take to ensure that the work you delegate is successful?
how will one take the order of fmcg products from one's distributor,when he has a stock of Rs 2 lakh AND monthly sales of product is of Rs 25000/-only?
how can i crack the interview with the combination of B.tech and PGDM ?...what are the tips i should followed
WHAT IS THE SALES TAX RATIO IN RAJASTHAN ON READYMADE GARMENT AND SEMI STICH FABRIC LIKE SALWAR SUITS AND SEMI STICH DUPATTA AND TUNICS
Tell me what should you assume about your co-workers if you want to delegate successfully?
what are our products and services offered? tell me your plans and strategy as a marketing officer?
How does the sale help consumers to increase their awareness?
What do you think is challenging in marketing?
hai this is raghu i'm working in 4wheeler automobile company as a sales consultant ,can anyone tell me how to handle the custamer at first visit & how to close the deal ? plz tell me anyone how to overcome this problems ? my mail id is " raghu.thinksnew@gmail.com" send any suggestions to this mail id
