Equinox Sales Training Practice Test

When you finish a simple ROI calculation, you typically present both the ROI percentage and the payback period. The ROI percentage shows how much profit you earned for each dollar invested, expressed as a percentage, which is the central measure of efficiency. The payback period adds a time dimension, indicating how long it takes to recover the initial investment. Net profit is used to compute ROI, but simply stating net profit doesn’t show how productive the investment is relative to its cost. Revenue growth and customer lifetime value are separate metrics and aren’t the direct outputs of a basic ROI calculation.