Return on Investment (ROI)
Profit made on investment relative to cost.
Formula
ROI = (Net Profit ÷ Investment Cost) × 100
Real World
Nike's 2003 sponsorship of a teenage LeBron James for $90 million generated billions in lifetime trainer sales — an ROI that transformed its basketball division.
Exam Focus
Show your ROI calculation in full and then interpret the result — examiner mark schemes reward the comparison to a benchmark or alternative.
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