Return on Investment (ROI)
ROI measures the profitability of an investment by comparing net gain to initial cost. It’s expressed as a percentage and calculated as (Net Profit ÷ Investment Cost) × 100. ROI is used to evaluate business performance, prioritise projects, and assess the effectiveness of marketing or capital expenditures.
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Retained Earnings
Retained earnings represent the cumulative net profit a company keeps after distributing dividends to shareholfers. Reported under equity on the…
Running costs
Running costs are recurring operational expenses necessary for keeping the business functioning day-to-day. This includes fuel, maintenance, salaries, insurance, and…
Revenue expenditure
Revenue expenditure refers to costs incurred in the day-to-day running of a business, like rent, utilities, and maintenance. These are…
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