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.
Monitoring your revenue growth will give you a good indication of whether your business is thriving or just getting by.
A high gross margin indicates that a company is doing well in generating revenue.
A high operating margin indicates that a business is efficient in its operations and can generate a good profit.
Earnings Per Share
High earnings per share indicate that a business is doing well in terms of profitability.
Return on Assets
A high return on assets indicates that a business uses its assets efficiently to generate profit.
Return on Equity
A high return on equity indicates that a firm develops a good return for its investors.
A high price-to-earnings ratio indicates that a company is a good investment.
A high debt-to-equity ratio indicates that a business is taking on a lot of risk by borrowing money.