Return on Investment Assignment Help

Return on investment is often abbreviated as ROI.  It is a profitability measure. It is one of the most profitability ratios. It is the tool with help of which we can find the net profit eared from each of the investments. We can find out how much cost saving (profit) is realized for a given use of money. This is a performance measure. It is applied for the efficiency evaluation of investment. It is also used for efficiency comparison of several investments. So, ROI is the benefit which results from the investments. If the ROI is high, it means the gain compare favorably to cost of investment. It measures the gain/loss on an investment. The measurement of gain/loss is relative to the money invested amount. It is expressed as a percentage. It is used for personal financial decisions. It is also used to compare the profitability/efficiency of investments.

Return on Investment Formula

ROI = (Net Profit/Cost of investment) X100

The ROI calculation is flexible. There can be manipulations for uses. It can be used for comparison of ROI for different investments. It can also be used to calculate return on a stock.

Suppose Jack is an investor. He buys stocks worth of $1000. Two years later he sells the share for $1200. So, there is a $200 net profit from investment. According to the formula:

ROI = (200/1000) X100= 20%

return on investment assignment help

The purpose of ROI is to measure the rates of return on the money which is invested in an economic entity. It is done to decide if the investment should be undertaken or not. It is sometimes compared with rate of return. It can be calculated other than financial gain. Social return on investment method is sued for extra financial value. It can also be applied to evaluate impact on the stakeholders. It can be sued to identify for performance improvement. It is helpful in performance enhancement of investments. It can be used for pricing policies, capital equipment investment etc.

Another way to calculate ROI is:

                                                  (Return – Investment) / (Investment)                     

Before we start ROI calculations, we need:

  • Cost of Goods Sold: It is the cost to produce service/product.
  • Marketing Investment: The cost of media (doesn’t include production cost)
  • Revenue

ROI is very flexible. So it is most wide used profitability ration.  It is simple to understand. So, it simply allows selecting variables freely.
When we talk about a single – period review, we divide the return by resources (investments). The return is net profit.

ROI (%) = (Net Profit/Investment) X100

Net Profit can be calculated as:                  Gross Profit – Expenses

Investment can be calculated as: Stock + Market Outstanding + Claims.

Another way is

ROI = (Investment Gain – Investment Cost)/Investment Cost

Many times, complications can be experienced in ROI calculations. One case is when there is refinance of real property. Second case is when a second mortgage is taken out. There can be more complex calculations. Net profit and investment level both are influenced by marketing. So, marketing decisions can affect inventories, accounts receivable, new equipments etc.

ROI is an important financial metric. It is for asset purchase decisions. These decisions can include purchase of service, vehicle, machinery etc. Traditional investment decisions are based on ROI. Return on Investment is also used as a measure of divisional performance. So, it is used for divisional comparison of different sizes. It focuses on central business objective. It makes the best profit possible on the available capital. Where authority is decentralized, return on investment is quite effective.

Return on Investment Assignment Help | Finance Assignment Help

Finance is gaining academic acceptance worldwide. Due to increase in global business, financial companies are looking for finance graduates. So, it is a very promising professional field. But it needs one to be clear with concepts on tips and with good financial skills practically. Lengthy calculations of finance, cast flow analysis, cost benefit analysis, investment management, financial risk management etc can make anyone feel frustrated. Sometimes the problems are so complicated that even professionals also get confused. This is why we at ozassignmenthelp.com.au have come up with a suitable option for students. We provide the best online assignment help for the students. Our online Finance Assignment Help is specially prepared by some of the best finance experts and subject matter experts. Finance Assignment Help is the one way solution to all the problems of finance.
Return on Investment is an important tool in finance. It seems a simple formula. But many times when the calculations get fiercely complex. This is why, we provide professional Return on Investment Assignment Help. Every concept of the calculation gets cleared with Return on Investment Assignment Help.  Our professional tutors and subject matter experts have put their best intellectual effort in Return on Investment Assignment Help. So, there is no doubt that Return on Investment Assignment Help is highly professional and best academic help. This is the best option for the students looking for professional Return on Investment Assignment Help.