RETURN

ON
INVESTMENT
(Lợi suất đầu tư)

1. Phùng Mỹ Kim
2. Trần Thị Như Ngọc
3. Nguyễn Thị Lệ Thanh
 Return on investment
(Lợi suất đầu tư)
01 What ROI is
02 How it works
03 Its roles
04 Pros and cons
05 Conclusion
01
What ROI is
What ROI is
Return on investment
(Lợi suất đầu tư)
 The profit from an
activity for a particular
period compared with the
amount invested in it.
02
How ROI works
How ROI works

 
How ROI works
John invested $1,800 in Slice Pizza Corp. in 2017
 and sold his shares for a total of $2,400 one year
later.
  2400− 1800
=0,25
1800

ROI = 25%
How ROI works
+ Chart Title A net gain

-
A net loss
03
ROI’s roles
ROI’s roles

Measure the Adding a new

benefit department

Hiring new Sales

employees strategies
ROI’s roles
 Measure the benefit obtained from an investment
 Add new tools, equipment
and products to your
business
 Evaluate the efficiency of
an investment
ROI’s roles
 Measure the benefit obtained from an investment
 Hiring new employees
ROI’s roles
 Measure the benefit obtained from an investment
 Hiring new employees
 Adding a new department
ROI’s roles
 Measure the benefit obtained from an investment
 Hiring new employees
 Adding a new apartment
 Sales strategies
04 Pros and cons
Advantages of ROI

Simple and easy to Comparative

#1 calculate analysis #3
Indicator of
Achieving goal other
#2 congruence performance #4
ingredients
Advantages
#1 Simple and easy to calculate
 

Not required a new

Simple
accounting
formula.
measurement.
Advantages
#2 Achieving goal congruence
(Đạt được nhiều mục đích cùng một lúc)
Advantages
#3 Comparative analysis
(Mang tính phân tích đối chiếu)
Advantages
#4 Indicator of other performance ingredients
Disadvantages of ROI

Disregards the Susceptible to

#1 factor of time manipulation #2

Not indicate the Not focus on long

#3 reason why the term result and #4
ratio low or high profitability
Disadvantages
#1 Disregards the factor of time
(Không quan tâm đến yếu tố thời gian)
Disadvantages
#2 Susceptible to manipulation
(Dễ bị thao túng bởi giá cả, quyền lực,…)
Disadvantages
#3 Not indicate the reason why the ratio low or high
Disadvantages
#4 Not focus on long term result and profitability
 Pros Cons
 Simple and easy to  Disregards the factor of
calculate time
 Achieving goal  Susceptible to
congruence manipulation
 
Comparative analysis Not indicate the reason
  why the ratio low or high
Indicator of other Not focus on long term
performance ingredients result and profitability
05
Conclusion
References
1. Cambridge Business English Dictionary
2. Investopedia.com
3. Business-case-analysis.com
4. Corporatefinanceinstitute.com
5. Yourarticlelibrary.com
6. En.wikipedia.org
7. Explania.com

Return on investment (ROI)

1 2 3
4 5
6 7 8
 What is ROI?
A. Measuring the amount of net income
returned as a percentage of shareholder equity

B. Measuring the amount of return on an

investment, relative to the investment’s cost

C. Measuring how profitable a company is

relative to its total assets
An investor buys $1000 worth of stocks
and sells the shares two years later for
$1200.
Can you caculate the ROI of this example?

20%
How many roles of ROI
have appeared in our
presentation?
A. 3 B. 4

C. 5 D. 6
WHICH ABOVE IS THE MAIN ROLE
OF “RETURN ON INVESTMENT” ?
A. Hiring new
B. Sales strategies 
employees

C. Measure the
D. Adding a new
benefit obtained
department
from an investment
What does the word “ROI”
stand for?
R E T U R N O N

I N V E S T M E N T
 PICK UP THE PROS OF “ROI”

1. Not focusing on long term results and profitability

2. Doing a comparative analysis

3. Achieving Goal Congruence

4. Disregarding the factor of time

5. Simple and Easy to Calculate

 LUCKY
NUMBER
How do you feel about
our presentation?