18 min read
How is Return on Investment (ROI) Calculated? The Equity Research Analyst's Definitive Guide to Measuring Capital Efficiency and Real Wealth Creation
A rigorous institutional equity research masterclass on Return on Investment (ROI) calculation and capital efficiency. Synthesizes insights from the top 20 seminal books (Thorndike, Graham, McKinsey, Rappaport, Mauboussin) and premier free online analytical platforms. Covers the mathematics of Simple ROI, CAGR, XIRR for irregular SIP cash flows, the Fisher inflation equation, tax drag, corporate ROIC vs WACC, DuPont 3-way decomposition, sector-specific metrics, and the official Financial Calculator mobile app.