ROI

ROI

InflatableOffice will show you some basic ROI calculations as long as you enter cost information for rental inventory. The ROI and cost data is located in the Log section of the rental/accessory item.

You can enter as many cost lines as you wish. Each cost line takes a date, cost, and note. Most likely you will enter the date you purchased or put the item into service as your first line item with the cost of purchase and a note saying that this is when you added the item to inventory. Subsequent cost lines might be repairs, upgrades, or other costs associated with the item.

When viewing the cost history of the item, you will see 2 additional fields per cost line item:

  • Return: The sum of the money made on that item the year of the line item.
  • ROI for Period: The ROI of that cost line item, or the Return divided by the Investment/Cost. This helps determine whether the cost line item was worth it.

Below the cost line items, you will see two additional calculations:

  • ROI: Your Return On Investment in total for the rental/accessory.
  • Compound Annual Growth Rate: This is a useful measure of growth over multiple time periods. It can be thought of as the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over the time period.
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