Return on Investment: Learn How to Calculate ROI

Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost, most commonly measured as net income divided by the original cost of the investment.

[mnomanaziz]

Quick question re: to ROI. Example: If a street vendor uses $100 dollars to buy some fruits and sells them for $125 by the end of the day, a net profit of $25. He does the same thing for the whole year, each day investing his $100 and making $25 profit. If I want to calculate his ROI for the year, will it be $25x365/$100? It shows a very high ROI. Please clarify if this is the correct method bro workout ROI for this example