depending on the investment projects, the return on profits will be different. if you want to invest in traditional businesses, the annual profit will be 21%, which is very good; If you invest in the emerging Internet service industry, you may be able to recover the cost in one year! Of course, it also depends on the amount of money you invest.

return on investment (ROI)= annual profit or average annual profit/total investment ×111%. Analysis:

1. Enterprises can improve profit rate by reducing sales costs; Improve the efficiency of asset utilization to improve the return on investment

2. The advantage of return on investment (ROI) is that it is simple to calculate.

2. The return on investment (ROI) is often time-sensitive-the return is usually based on certain years.

return on investment:

1. First, calculate the amount of property owned at the end of a certain business, which is called ending property and A..

2. deduct the initial investment in the company. The initial investment amount becomes the initial property and B.

3. Divide the obtained results with a view to starting the property.

4. Finally multiply by 111% to indicate the percentage of return.

5. formula: A-B/B×111%=ROI (return on investment)

2. return on investment

1. the return on investment period is a static analysis method to calculate the amount of income under normal production and operation conditions after the project is put into operation, the amount of depreciation accrued and the amortization amount of intangible assets used to recover the total investment of the project, and compare it with the industry benchmark investment payback period to analyze the financial benefits of the project investment. The payback period index measures the speed of recovering the initial investment. Its basic selection criteria are: when there is only one project to choose from, the payback period of the project should be less than the highest standard set by the decision maker; If there are multiple projects to choose from, the project with the shortest payback period should be selected on the premise that the payback period of the project is less than the highest standard required by the decision maker.

2. The static payback period can reflect the fund recovery ability of the project scheme to a certain extent, and its calculation is convenient, which is helpful to evaluate the projects with faster technical update. But it can't consider the time value of funds, and it doesn't analyze the income after the payback period, so it can't determine the total income and profitability of the project in the whole life cycle.

3. Method of determining indicators

Formula method

If the investment of a project is concentrated during the construction period, the annual net cash flow of operation is equal within a certain period after the project is put into production, and its total is greater than or equal to the original investment amount. The payback period of investment excluding the construction period can be directly calculated according to the following simplified formula: payback period of investment excluding the construction period (PP') = total original investment/annual equal net cash flow including the investment payback period of the construction period (PP )= payback period excluding the construction period+construction period

List method

The so-called list method refers to the way of calculating "accumulated net cash flow" through a list. Because the static payback period can be determined by this method under any circumstances, this method is also called the general method. The principle of this method is: according to the definition of payback period, the payback period of investment including construction period satisfies the following relationship, that is, it shows that the payback period of investment including construction period in the column of "cumulative net cash flow" of financial cash flow statement is exactly the number of years when the cumulative net cash flow is zero. Zero cannot be found in the column of "Cumulative Net Cash Flow", and the payback period of investment including the construction period must be calculated as follows: the payback period of investment including the construction period (PP)= the number of years corresponding to the last negative cumulative net cash flow+the absolute value of the last negative cumulative net cash flow ÷ the next year's net cash flow or: = the year when the cumulative net cash flow is positive for the first time -1+ the investment that has not been recovered at the beginning of this year.