Guillermo Return on Investment

In: Business and Management

Submitted By hasani
Words 266
Pages 2
Return on investment
Return on investment (ROI) is calculation used to measure and evaluate the effectiveness of an investment. ROI can also be used to determine the value and effectiveness of current and future investments. In most cases, the ROI has a direct correlation with the investment situation given and has the potential to contain a lot of ambiguity. When Guillermo finantual analysis evaluated the ROI, they placed a great deal of focus on evaluating the current investments by making a comparison among the size of the investment and the time period of the expected revenue.
In each case there is a negative return from investment. It is recommended that Guillermo should continue with the current business. The reason for this is that additional investment in buildings and equipment is re he pro forma cash flow budget has been created for the current business.

The company and potential stockholders have an interest in increased and maximized profitability and a right to growth and decisions that will benefit the company. The stockholders are mainly concerned with their return on investment in the company. Intersect has values it needs to keep in mind when making decisions. The company has the responsibility of respecting its employees and upholding the integrity of the business name.
The return on investment for the month of June for Guillermo is very disheartening. A -1.4% return on investment will not attract additional investors or look promising to creditors. The company must find ways to cut costs or look into other means of production efficiency for the company to start turning a…...

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