Small Business Investing
Rois and Small Businesses
What is the main purpose of using ROI calculations or techniques?
The main purpose of using ROI calculations or techniques is to measure how much money is earned (profit) for every dollar of expenses. If a company is earning more than 0%, it is earning more money than it is spending. If the company is generating very high ROI, and increasing its ROI each month, quarter, or year, it is very efficient at deploying its capital.