![](https://images.hive.blog/768x0/https://steemitimages.com/DQmbGzPrXrPoA9EsTxG3Lq3khZLdTW6GY1k8o34x9uZG2jC/Trading%20terminology%202.jpg)
But what does a return on investment actually mean?
The ROI shows the outcome of any particular investment and is shown as a percentage. This measurement can be used for personal financial decisions or to compare a company’s profitability. The return on investment can be calculated with an easy formula.
![](https://images.hive.blog/768x0/https://steemitimages.com/DQmdAHPqYLya92gKCCYirAcK5DFnMYCLxgTUteppDyPdSMd/ROI%20Formula.jpg)
When using the ROI measurement, note that the time value is not taken in consideration. For instance it’s more preferable to get a 15% return in 6 months than a 15% return in two years.
The base of everything ! :)
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