10 Types of ROI For Successful Business Operations

By monitoring these eight metrics, you can understand how successful your business is and whether it is generating a good return on investment.

Revenue Growth

1.

Monitoring your revenue growth will give you a good indication of whether your business is thriving or just getting by.

Gross Margin

2.

A high gross margin indicates that a company is doing well in generating revenue.

Operating Margin

3.

A high operating margin indicates that a business is efficient in its operations and can generate a good profit.

Earnings Per Share

4.

High earnings per share indicate that a business is doing well in terms of profitability.

Return on Assets

5.

A high return on assets indicates that a business uses its assets efficiently to generate profit.

Return on Equity

6.

A high return on equity indicates that a firm develops a good return for its investors.

Price-To-Earnings Ratio

7.

A high price-to-earnings ratio indicates that a company is a good investment.

Debt-To-Equity Ratio

8.

A high debt-to-equity ratio indicates that a business is taking on a lot of risk by borrowing money.