Via headexposed.com by Nelson Nigel
Return on investment is a metric used to measure whether an investment is going to return profits in large or small amount compared to the amount released for the investment. It is also used to calculate which investments are worth keeping.
Measuring return of Investment (or ROI for short) is done by dividing the difference between profits gained and cost of investment over the cost of the investment. The result is expressed in ratio.
- ROI 1.7 Times Higher For Cloud-Based Applications (misco.co.uk)