Business
What Is ROI And How To Calculate ROI?

What Is ROI? – If you are a business owner, investor, or marketer, you have probably heard of the term ROI before.
ROI, or Return on Investment, is a performance metric used to evaluate the efficiency and profitability of an investment or business venture.
In simple terms, it measures the amount of profit earned in relation to the amount of money invested.
Understanding ROI is crucial for making informed business decisions and maximizing profits. In this article, we will discuss what ROI is, how to calculate it, and how to use it to make informed decisions.
What is ROI?
ROI is a financial metric used to measure the profitability of an investment. It is expressed as a percentage and shows the amount of money earned about the amount invested.
ROI can be used to evaluate the profitability of various types of investments, including marketing campaigns, stocks, real estate, and business ventures.
ROI can be positive, negative, or zero. A positive ROI indicates that the investment has generated a profit, while a negative ROI indicates a loss.
A zero ROI indicates that the investment has neither generated a profit nor incurred a loss.
Why is ROI Important?
The return on investment (ROI) is a financial metric used to determine the profitability of an investment.
It helps business owners, investors, and marketers to make informed decisions by evaluating the efficiency and profitability of an investment.
ROI can be used to compare the profitability of various investments and determine which investment will provide the highest return on investment.
Moreover, ROI is a crucial metric for measuring the success of marketing campaigns. It helps businesses determine whether a marketing campaign is generating a positive return on investment.
By measuring ROI, businesses can adjust their marketing strategies and optimize their campaigns for maximum profitability.
How to Calculate ROI?
Calculating ROI is relatively simple. There are two ways to calculate ROI: the basic ROI formula and the advanced ROI formula.
Basic ROI Formula
The basic ROI formula is:
ROI = (Gain from Investment – Cost of Investment) / Cost of Investment * 100%
In this formula, the gain from investment refers to the amount of money earned from the investment, and the cost of investment refers to the amount of money invested.
For example, suppose you invested $1,000 in a marketing campaign and earned $1,500 in revenue. Using the basic ROI formula, the ROI would be:
ROI = ($1,500 – $1,000) / $1,000 * 100% = 50%
This means that the marketing campaign generated a 50% return on investment.
Advanced ROI Formula
The advanced ROI formula is:
ROI = (Net Income / Cost of Investment) * 100%
In this formula, net income refers to the total profit earned from the investment, and the cost of investment refers to the amount of money invested.
For example, suppose you invested $10,000 in a business venture and earned $15,000 in revenue. The total expenses incurred in the venture were $5,000. Using the advanced ROI formula, the ROI would be:
ROI = ($15,000 – $5,000) / $10,000 * 100% = 100%
This means that the business venture generated a 100% return on investment.
How to Use ROI to Make Informed Decisions
ROI can be used to make informed decisions in various ways. Here are some ways in which ROI can be used to make informed decisions:
1. Evaluating Investments
It is possible to evaluate the profitability of various investments using ROI. By comparing the ROI of different investments, businesses can determine which will provide the highest return on investment.
2. Measuring the Success of Marketing Campaigns
ROI is a crucial metric for measuring the success of marketing campaigns. By measuring the ROI of a marketing campaign, businesses can determine whether the campaign is generating a positive return on investment or not.
If the ROI is negative, businesses can adjust their marketing strategies and optimize their campaigns for maximum profitability.
3. Analyzing Business Performance
ROI can be used to analyze the performance of a business over time. By measuring the ROI of a business venture over a period, businesses can determine whether the venture is generating a positive return on investment or not.
This can help businesses identify areas needing improvement and optimize their operations for maximum profitability.
4. Comparing Competitors
ROI can be used to compare the profitability of businesses within the same industry.
By comparing the ROI of different businesses, businesses can determine which businesses are performing well and which ones need improvement.
Conclusion
ROI is an essential metric for measuring the profitability of an investment. It helps businesses to make informed decisions by evaluating the efficiency and profitability of an investment.
ROI can be calculated using the basic or advanced formula, and it can be used to evaluate investments, measure the success of marketing campaigns, analyze business performance, and compare competitors.
By understanding ROI, businesses can make informed decisions and maximize profits.
FAQs
- What is a good ROI for a business? A good ROI for a business depends on the industry and the type of investment. Generally, a positive ROI is considered good, and a higher ROI is better.
- Can ROI be negative? Yes, ROI can be negative. A negative ROI indicates that the investment has incurred a loss.
- What factors can affect ROI? Several factors can affect ROI, including the type of investment, the cost of investment, the revenue generated from the investment, and the expenses incurred.
- Is ROI the only metric used to measure investment performance? No, ROI is not the only metric used to measure investment performance. Other metrics, such as net present value, internal rate of return, and payback period, can also be used to evaluate investment performance.
- Can ROI be used to evaluate the performance of a business venture over time? Yes, ROI can be used to evaluate the performance of a business venture over time. By measuring the ROI of a business venture over a period, businesses can determine whether the venture is generating a positive return on investment or not.
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Business
PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.
This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.
Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.
Pepsi’s beverage sales fell this quarter.
The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.
Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.
Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.
The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.
Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.
Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.
Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.
Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.
Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”
Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.
The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.
Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.
The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.
Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”
Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.
The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.
Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.
The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:
SOURCE: CNBC
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Old National Bank And Infosys Broaden Their Strategic Partnership.
Business
Old National Bank And Infosys Broaden Their Strategic Partnership.

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.
This expansion is more likely to take place sooner rather than later, with the likelihood being higher.
For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.
This lets the bank leverage Infosys’ services, solutions, and platforms.
Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”
This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.
This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.
Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.
Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.
Infosys currently ranks Old National thirty-first out of the top thirty US banks.
This ranking is based on the fact that Old National is the nation’s largest banking corporation.
It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.
Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”
This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.
We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.
Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.
SOURCE: THBL
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American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack
States Sue TikTok, Claiming Its Platform Is Addictive And Harms The Mental Health Of Children
Qantas Airways Apologizes After R-Rated Film Reportedly Airs On Every Screen During Flight
Business
American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.
American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack
American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.
According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.
SOURCE | AP
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