ROI: Key figure for investment efficiency

February 14, 2024

Return on investment (ROI) is a key metric that measures the ratio of profit or loss from an investment in relation to the amount invested and thus shows the efficiency and profitability of an investment for a startup or company. This metric allows decision makers to evaluate the financial performance of various investments, make strategic allocations of resources and review the alignment of projects and initiatives with corporate goals. By analysing ROI, startups can make informed decisions to optimise their financial performance and maximise value for stakeholders.