How to calculate the return on investment of theme hotels?

Return on investment (ROI)= annual profit or average annual profit/total investment × 100%. As can be seen from the formula, enterprises can improve profit margins by reducing sales costs; Improve the efficiency of asset utilization to improve the return on investment. The advantage of return on investment (ROI) lies in its simple calculation. Return on investment (ROI) is usually time-sensitive-the return is usually based on a specific year.

The return on investment covers the profit target of the enterprise. Profit is related to the property necessary to put into operation, because managers must make profits through investment and existing property. Investment can be divided into two categories: industrial investment and financial investment. People usually say that financial investment mainly refers to securities investment.

Extended data:

superiority

The rate of return on investment can reflect the comprehensive profitability of investment centers, and it has horizontal comparability because it eliminates the incomparable factors of profit difference caused by different investment amounts, which is conducive to judging the operating performance of each investment center. In addition, the investment profit rate can be used as the basis for choosing investment opportunities, which is conducive to optimizing resource allocation.

disadvantaged

The deficiency of this evaluation index is the lack of overall concept. When the return on investment of an investment project is lower than that of the investment center and higher than that of the whole enterprise, although the enterprise wants to accept the investment project, the investment center may refuse it.

Baidu Encyclopedia-Return on Investment