Investors have two primary concerns—how much they must pay and how much they stand to gain. Essentially, they would like to know the total price they have paid and the profit or loss their investment has earned. The return on investment (ROI) is a ratio that divides the net income by the original investment’s capital cost. The ROI tells you how an investment has performed. The ratio is expressed as a percentage, so you can compare the profitability of different investment choices.
This open-access Excel template is a useful tool for bankers, investment professionals, corporate finance practitioners, portfolio managers, and anyone preparing a corporate presentation.
Return on Investment (ROI) is among the topics included in the Corporate Finance module of the CFA Level 1 Curriculum. Gain valuable insights into the subject with our Corporate Finance course.
You can also explore other related templates such as—Return on Equity (ROE), Gordon Growth Model, and Cost of Equity.