What is ROI - Return on Investment?

Value is a crucial concept in Project Management. But there are different ways to calculate it. For my money, the most robust simple expression of value is Return on Investment, ROI.

ROI is the ratio of Net Income to Total Cost:
ROI = Net Income / Total Cost

And Net Income is Total Income minus Total Cost:
ROI = (Total Income – Total Cost) / Total Cost

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⏱ Chapter Markers...
00:00 - What is Return on Investment (ROI)?
00:13 - Value
01:09 - Calculating ROI
01:51 - ROI Ratio and ROI Percentage
02:07 - Interpreting ROI values
02:50 - Use of ROI
03:11 - ROI limitation
04:04 - Summing up

#ROI #ReturnOnInvestment #ProjectManagement

[Onlinepmcourses]

I explain what ROI is, how to calculate it, and why it's important.

[InfluentialPMO]

Excellent video Mike! Nicely explained 👍

[mymoon_writer]

Is there a way you can calculate the eps if the ROI is given??