Maximizing ROI or profitability

ROI is usually calculated in isolation by comparing a company's ability to generate revenue in any given year in relation to how much it costs to generate that revenue. However, this is not necessarily an optimal method for measuring and then maximizing ROI. Companies need to consider other factors that drive firm performance when considering ideal investment strategies. Additionally, companies must look at the relationship between profitability and ROI and decide how to manage each metric simultaneously.