profit vs return
TRANSCRIPT
•Nabeel Iqbal•MBAR15300
4
Macro Economics
Profit VS Return
Table of content
What is profit
How to calculate Profit
What is Return on investment
How to calculate ROI
What Is Profit?
An economic profit or loss is the difference between the revenue received from the sale of an output and the opportunity cost of the inputs used
How to Calculate Profit
What is Return on Investment?
A performance measure used to evaluate the efficiency of an
investment or to compare the efficiency of a number of different
investments. ROI measures the amount of return on an investment
relative to the Investment Cost.
How to calculate ROI
Profit ReturnIt is what the business is left
after deducting expenses from revenue
It is anything what business enjoys above principal amount of investment.
Profit is received in two types i.e. Gross Profit and Net
Profit
Return in received in many different types i.e. Interest,
dividend etc.
Profit is Calculated Against cost.
Return is calculated against investment
Difference Between Profit and Return