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what is ROI and could you plz explain me in detail with all
calculations with proper example, that how u will calculate
ROI of a FMCG distributor.Remember that you have to explain
me in that manner that i am a fresher and u r explaining me
all the things abt ROI in proper steps that a person may
know each and everything abt ROI after ur example so
explain...
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Answer Posted / pardeep madhwal
ROI means Return on investment
ROI = Profit/Investment*100
Profit= Income-expense
For exammple
Distributor M/s Virgo agency in dwarka having turnover 70 lac per month distributor margin 8%, Salesman 10000 rs, Accountant 10000 rs, Driver 10000rs, Helper 5000
Fuel 5000,Electricity 5000, Market credit 50000,Average closking stock 6.5 lac.
Ans. Income 70 lac* 5% = 350000
Expense Salesman salary= 10000
Accontant salary=10000
Helper salary=5000
Fuel =5000
Electricity= 5000
Total= 35000
Profit= 350000-35000=315000
Investment= 6.5 Lac+ 50000rs = 7Lac
ROI= 315000/700000*100 = 45%
Simple example want more contact me
Healthier ROI is around 22%
| Is This Answer Correct ? | 60 Yes | 74 No |
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