Roi

ROI does not take into account the cost of capital. It merely looks at profits relative to capital employed without taking into account the cost of the capital which has been invested. It is therefore not consistent with maximising returns to investors” Sorry sir I had to open the thread again because previously I think you did not understand my question. When we calculate the controllable profit figure does not that comes after we deduct the finance costs(cost of capital)?So if yes then the Roi is telling investors that the cost of capital is covered.