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Return On Investment Presentation Template

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Return On Investment

Transcript: What is ROI? ROI = Net Profit/ Cost of Investment* 100 where, Net Profit= Gross Profit – Expenses Cost of Investment = Stock+ Market Outstanding + claims OR ROI= (Gain from investment – Cost of investment) Cost of investment OR ROI= (Revenue − Cost of goods sold) Cost of goods sold Advantages and Disadvantages of ROI Profits can be manipulated Three ways to improve ROI..... Formula: Reduce Expenses Matching with Accounting Measurements Comparative Analysis Submitted To: Mr. Vibhu Ashok Sir To control our investment we must have an objective. For good investment we should know about our : 1.) Promo plan 2.) Right customer for the the investment 3.) Reflection on sales 4.) Either short term or long term investment. Increase Sales Example : Return On Investment Disadvantages of ROI Discourage Managers from investing in it A. Gross profit 1428 B. Investment 2200 C. Expenses 385 ROI = Net Profit x 100 Cost of investment = (1428 – 385) x 100 2200 = 1043 2200 = 47.40% Manager may focus on sort run on te expense of long run Better Measurement of Profitability Advantages of ROI IT Performance Analysis Controlling the ROI ROI Methodology Can Lead to disfunctional decisions Achieving Goal Congruence ROI is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments. Using ROIT , to perform an IT performance analysis on corporations , it was found that the result for all companies was inconclusive. The data indicated that on average, companies that spend more on IT are not achieving higher results , while companies spending less on IT , are not seeing lower performance . The research indicates that ROIT performance for particular companies is not driven exclusively by how much each company spends , but rather by how they spend and how well the spending is managed . Therefore , a company with sustainable profitability and frugal IT investments will have a higher ROIT than companies with lower profitability and higher IT investments . What is it ? Why use it ?  Systematic approach to evaluating all types of programs and projects .  Captures six types of data from reaction to ROI  Credible and scalable process.  Most widely used evaluation system , with global adoption . Submitted by: Ayushi Vijayvargiya Kanika Goyal Kavita Kushwa Rashi Nagda Yashi Agrawal Reduce Assets Performance of Investment Decision

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