Example of the ROI Formula Calculation. and career path that can help you find the school that's right for you. You find the ROI by dividing operating income by average operating assets. 3. Also, gain some understanding of ROI, experiment with other investment calculators, or explore more calculators on … When you want to determine how well a company is performing, a good way to find out is by calculating its Return on Investment (ROI). - Definition & Legality, Quiz & Worksheet - Pros & Cons of Historical Cost Concept, Quiz & Worksheet - Idle Time in Accounting. Substituting the values in the formula, ROI = ( (80000 - 50000) / 50000)) × 100 = (30000 / 50000) x 100 = 60 %. Meanwhile we're impatient for a larger return on investment. What is your ROI for this stock holding? Already registered? For its three investment centers, Gerrard Company accumulates the following data: I II III Sales 2,000,000 4,000,000 4,000,000 Controllable margn 1,400,000 2,000,000 3,600,000 Average operating asset, The fiscal 2013 financial statements of Baker Hughes, Inc. shows net operating profit margin (NOPM) of 5.59%, net operating asset turnover (NOAT) of 1.06, return on equity of 6.30%, and adjusted retur, Reed Company's sales last year totaled $180,000 and its return on investment (ROI) was 12%. Simple Two-Event ROI Example Here's a simple example: Shareholders can calculate the value of their stock investment in a particular company by use of this formula: ROI = (Net income + (Current Value - Original Value)) / Original Value * 100. By helping reveal the economic value of social and environmental outcomes it creates a holistic perspective on whether a development project or social business or enterprise is beneficial and profitable. They lure customers to a landing page to get them to share contact information such as email and phone in exchange for differentiated materials and experiences, such as e-books or trials. Enrolling in a course lets you earn progress by passing quizzes and exams. Maria is the marketing manager for her company. Portable table and chair and insulated coolers borrowed from his father: $ 0.00, Cardboard, pens and creativity to write advertising and price posters: $ 15.00, 10 liters of ice cubes manufactured in the home refrigerator using mineral water (competitive advantage):    $ 20.00, 50 liters of mineral water (comp. This is one of the limitations of traditional ROI formula but this can be overcome by using annualized ROI formula. You are a house flipper. Did you know… We have over 220 college So, what do you think of these Return On Investment examples to define marketing investments? {{courseNav.course.mDynamicIntFields.lessonCount}} lessons first two years of college and save thousands off your degree. 38 chapters | For example, if you invested $100 in a share of stock and its value rises to $110 by the end of the fiscal year, the return on the investment is a healthy 10%, assuming no dividends were paid. An investor buys $10,000 of stocks and sells the shares 1 year later with amount $12,000. Formula : ROI = ( (Earnings - Initial Invested Amount) / Initial Invested Amount ) × 100. ROA Formula / Return on Assets Calculation. Social Return on Investment (SROI) is a systematic way of incorporating social, environmental, economic and other values into decision-making processes. Required fields are marked *. Based on the estimated lifecycle, we will use a three-year time line with four … Thus, the final conversion rate is 3.2% or (0.20 x 0.40 x 0.40), for each lead that arrives at a company landing page and consequently fills out the form. 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If the desired scenarios don’t go your way, you can quickly change your campaigns to adjust your investments across different media to improve results. Assume an investor bought 1,000 shares of the hypothetical company Worldwide Wicket Co. at $10 per share. See also: How to start a home business: The 4 VRIO questions. Study.com has thousands of articles about every Return on Assets (ROA) is a type of return on investment (ROI) ROI Formula (Return on Investment) Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive in relation to their investment cost. California's Get Involved Regional Leaders develop networking and training events for library volunteer engagement coordinators in their regions across the state. succeed. If there is a loss, the formula will yield a negative number. courses that prepare you to earn The advantage of online campaigns is that you can keep track of the Return On Investment. Create your account. Sales arc $320,000, net operating income is $35,200, and average operating assets are $128,000. Examples of investments. So, let’s include this practice in the following return on investment calculation example. Try refreshing the page, or contact customer support. This is because this formula is very practical to use. What Is the Syllabus of an Algebra I Course? What Are Commodities? Return on Marketing Investment Benchmarks It is expressed in terms of a percentage of increase or decrease in the value of the investment during the year in question. Return on Investment Essay Sample. In this lesson, you'll learn the basic formula, discover a variant used for shareholders, and be provided examples. © copyright 2003-2021 Study.com. The ROI or the return on investment tests the gain or loss that investment has produced relative to the amount of money invested. In other words, ROI reveals the overall benefit (return) of an investment using the gain or loss from the investment along with the cost of the investment. Tim Berry is a developer of business plan software and says that sometimes it pays to forget the formal financial definition.. Berry says that every business expense, including time, resources, and money, is an investment. This brings revenue of $ 1,000,000.00 in this period, which corresponds to a profit of $ 200,000 (around 20%), every year in the summer. The total cost of this campaign is $ 200,000.00. ROI Calculation Example. Return on investment, or ROI, is the ratio of a profit or loss made in a fiscal year expressed in terms of an investment and shown as a percentage of increase or decrease in the value of the investment during the year in question. As a member, you'll also get unlimited access to over 83,000 Note: In this case, the gain from the marketing campaign should be measured by the increase in profit, not total revenue, to justify the investment. The basic formula for ROI is: ROI = Net Profit / Total Investment * 100. Below are other return on investment calculation examples that may be best suited for those who want to better understand what financial management is. Therefore, the person has 60 % ROI on his investment. just create an account. … - Definition, Types, Advantages & Examples, What is a Private Investment? The upper management at Zylex evaluates each factory based on the capital turnover ratio from the DuPont system. However, the estimation can be modified by subtracting taxes and fees to view more detailed Return on Investment total. California Sexual Harassment Refresher Course: Supervisors, California Sexual Harassment Refresher Course: Employees. For example, if the ROI does not show positive results, then the investor can start looking for further options where he can get a higher ROI value. Log in here for access. Let's apply the formula with the help of an example. - Definition & History, What is a Tontine? The above mentioned is the concept, that is elucidated in detail about ‘What is Return on investment’ for the Commerce students. So, of these 20%, 40% react positively to emails with information about their BPM tool and of these 40%, another 40% end up buying the product, when they’re contacted by telephone. More often, however, return on investment applies to investment scenarios with multiple cash inflows and outflows across a longer investment life. What is the Difference Between Blended Learning & Distance Learning? flashcard set{{course.flashcardSetCoun > 1 ? You can test out of the Visit the Intro to Business: Help and Review page to learn more. Imagine a shoe brand that has average sales of 100,000 pairs in its summer launches every year. Your email address will not be published. | {{course.flashcardSetCount}} 549 lessons Create an account to start this course today. The ROI formula looks at the benefit received from an investment, or its gain, divided by the investment's original cost. Anyone can earn One of the instruments that can be used in this is Return On Investment or ROI. Return on Investment (ROI): An examination of ROI financial analysis and its historical roots with the DuPont Company Like it or not, with the current state of the economy, as well as, enforced implications of the Affordable Care Act, a large number of hospitals and healthcare agencies will close their doors for good this year. All three alternativesrequire an initial investment in year 0 (negative cash flow) and come with asingle payment at maturity that consists of the repayment and the return. Therefore, by applying this value in the formula, we can discover the ROI of each investment in social marketing: So, after realizing that in this hypothetical return on investment calculation example Content Marketing is more advantageous, the company invests 50% of its budget in this, 30% in Facebook and 20% in Google. Look at this return on investment calculation example in 3 different types of marketing investments in online media: Imagine a company that provides cloud-based BPM modeling software through SaaS, that is: with a monthly fee users are entitled to use the software. The basic ROI formula is: Net Profit / Total Investment * 100 = ROI. For example: out of every 1,000 people who reach their landing page, 32 end up buying the product. By Kenneth Boyd, Kate Mooney . Quiz & Worksheet - What is the Principal-Agent Problem? Return on Investment — Practice Questions. Two years later, the investor sells the property for $1,000,000. Select a subject to preview related courses: ROI = (Net Income + (Current Value - Original Value)) / Original Value * 100, ROI = (75 + (5,200 - 5,000)) / 5,000 * 100. How to Use Study.com in High School CTE Programs, School Closures in Texas for Coronavirus: How TX Schools Can Teach Online, Tech and Engineering - Questions & Answers, Health and Medicine - Questions & Answers, Zylex Corporation has multiple factories across the United States. Sociology 110: Cultural Studies & Diversity in the U.S. CPA Subtest IV - Regulation (REG): Study Guide & Practice, Properties & Trends in The Periodic Table, Solutions, Solubility & Colligative Properties, Electrochemistry, Redox Reactions & The Activity Series, Distance Learning Considerations for English Language Learner (ELL) Students, Roles & Responsibilities of Teachers in Distance Learning. Another example is illustrated in the chart below. advantage) to make the lemonade: $ 100.00, 300 biodegradable paper cups (ecologically responsible = market positioning): $ 100.00, Content Marketing = 320 – 200/200 x 100 = 60%, Facebook Lead Ads = 320 – 240/240 x 100 = 33.3%. 2. For example, an ROI % of 50% is earned in 50 days is the same as earned the same in 15 days but 15 days is a short period so this is a better option. It’s important to remember for anyone who wants to learn how to calculate Return On Investment for projects or companies that a common practice is: To define 3 scenarios. Earn Transferable Credit & Get your Degree, What Is Residual Income? Universities Offering a Major in Finance and Investment: How to Choose, How to Become an Investment Consultant: Education and Career Roadmap, How to Become an Investment Broker: Education and Career Roadmap, Registered Investment Advisor Certification and Training Programs, Investment Representative: Job Description and Requirements, Investment Advisor Courses and Training Program Overviews, How to Become a Portfolio Investment Manager, Investment Banking Degree Programs with Course Info. It seems counter-intuitive that the difference between a 10% return and a 20% return is 6,010x as much money, but it's the nature of geometric growth. Your email address will not be published. Shawn has a masters of public administration, JD, and a BA in political science. The sales growth for that month is $15,000. Your net profit is going to be what you netted ($160,000) minus what you spent ($75,000 + $35,000), so it is $50,000. If the company's turnover was 4, then its net operating income for the year must have been: a) $5,400 b) $, Working Scholars® Bringing Tuition-Free College to the Community, ROI is 'return on investment', the ratio of profit or loss made in a fiscal year, Basic ROI can be calculated as ROI = Net Profit / Total Investment * 100, A shareholder can evaluate the ROI of their stock as ROI = (Net Income + (Current Value - Original Value)) / Original Value * 100, State the equations used to calculate basic ROI and shareholder ROI. We use the investment gain formula in this case. credit-by-exam regardless of age or education level. - Definition & Examples, What Is a Hedge Fund? imaginable degree, area of Services. If only house flipping was that easy. The same $10,000 invested at twice the rate of return, 20%, does not merely double the outcome; it turns it into $828.2 billion. Quiz & Worksheet - What is the Bundle of His? Running a business includes making continuous (re)investments and taking acceptable risks the purpose of which is to generate turnover and making a profit. The company knows from its historical marketing investment data over the years that to refer 100 leads to a landing page, it’s necessary to invest individually in each option: (NOTE: this data is totally hypothetical and doesn’t indicate any tendency towards particular investments, they are mere examples!). There are many scenarios where ROI can be useful: ROI Example 1. It is most commonly calculated as net revenue divided by the investment's original cost of capital. Pedro simply assumed that he would sell everything he produced in 10 days, but what if it rained during that period, or on the contrary was so hot that his stock ended in 5 days? b. Compute the margin (as a percent) and tur. Here is an example of a simple return on investment (ROI) calculation. To advertise the business they opt for 3 online strategies: Create articles for a blog that addresses issues of interest to their audience. An error occurred trying to load this video. By measuring their return on investment, they understand when spending money will save them money. In the above example, we have seen how to calculate investment return in excel but one of the problems is it doesn’t take into consideration of time period for the investment. Return on investment f… After sales, expenses, and commission, you netted $160,000 on the sale of the renovated house. Let’s say a person has $2000 and he wants to invest it in some kind of business. Return on investment can evaluate straightforward investment situations with only one cash outflow and one cash inflow. You've also been paid $75 in dividends. Total costs and total revenues can mean different things to different individuals. - Definition, Structure & Examples, What is a Mutual Fund? Log in or sign up to add this lesson to a Custom Course. Let’s put it in the formula and see if the the board and chairperson approve the campaign: Apparently they will approve this marketing campaign based on this return on investment calculation example. Does your company use other types of investment analysis, such as IRR or Present Value? Return on investment. As the company’s average product cost is $ 100, this means that 100 leads sent to a landing page will generate, on average, 3.2 sales conversions, that is, a revenue of $ 320.00 (3.2 x $ 100.00). What Education Is Needed to Become a Dentist? Sinus Infection (Sinusitis): Causes, Symptoms & Treatment. ROI, Return On Investment, is one of the most used methodologies to gauge the possibility of making a profit on a project or business, or even compare several of them, in order to choose the best one. Plus, get practice tests, quizzes, and personalized coaching to help you This is a risk inherent in every business, and that’s why your sales forecasts should be the best possible. Return on Investment Examples. What I mean by that is the income and costs are not clearly specified. Return on Marketing Investment Example. The net profit from an investment is $2,000 and ROI is as follows:- 1. Analysis On Maximizing Investment Returns 1804 Words | 8 Pages; Ratio Analysis : A Company 's Profit Margin, Investments, And Return On Equity 853 Words | 4 Pages; Risk and Return Analysis on Common Stock of Standard Chartered Bank Nepal Ltd and Nepal Investment Bank Ltd. 6086 Words | 25 Pages To learn more, visit our Earning Credit Page. 46+1 sentence examples: 1. Return on investment (ROI) is the ratio of profit made in a financial year as a percentage of an investment. You originally purchased the shares for $5,000 and they're now worth $5,200. Last year, she put $7000 towards an ad campaign to advertise a new product. More about Return on Investment Analysis Essay example. Tell us in the comments! The return on investment formula is calculated by subtracting the cost from the total income and dividing it by the total cost.As you can see, the ROI formula is very simplistic and broadly defined. For a single-period review, divide the return (net profit) by the resources that were committed (investment): return on investment = Net income / Investment For example, if you invested $100 in a share of stock and its value rises to $110 by the end of the fiscal year, the return on the investment is a healthy 10%, assuming no dividends were paid. ROI = Net Profit / Total Investment * 100. What is the ROI? The expected investments a… Keep in mind that if you have a net loss on your investment, the ROI will be negative. Get the unbiased info you need to find the right school. Return on investment (ROI) is the ratio of a profit or loss made in a fiscal year expressed in terms of an investment. Return on investment (%) = (current value of investment if not exited yet + income from investment − initial investment and other expenses) / initial investment and other expenses x 100%. | 2 - Definition, Types & Examples, Quiz & Worksheet - Return of Investment Formula, Over 83,000 lessons in all major subjects, {{courseNav.course.mDynamicIntFields.lessonCount}}, Securities Markets and Investment Bankers, Real Income: Definition, Effect & Formula, Real Interest Rate: Definition & Calculation, What is a Foreign Investment? A Facebook integration that allows users to fill out forms in exchange for the same materials and experiences mentioned above. CS Company has a profit margin of 11%. To calculate his return on his investment, he would divide his profits ($1,200 - $1,000 = $200) by the investment cost ($1,000), for a ROI of $200/$1,000, or 20 percent. Pedro, a little boy from a small country town, decided to earn some extra money for the summer vacation, and set up a small bar at the gate of his house to sell lemonade. In this case, the net profit of the investment ( current value - cost ) would be $500 ($1,500 - $1,000), and the return on investment would be: ROI Example 2 With this, it’s possible to produce approximately 65 liters of lemonade (lemon juice and ice also increase the volume!). If he sells about 26 cups a day, he will exhaust his stock in 10 days, which is his goal. But what if these scenario forecasts didn’t materialize? Number of Years will be calculated by taking into consideration “Investment D… Return on investment is a crucial analytical tool used by both businesses and investors. Return on Investment Example. 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This is one sample implementation of the Get Involved Initiative's Volunteer Engagement Worksheet and Return on Investment Template. New Product Reporting: New products can be costly to research, create, … All other trademarks and copyrights are the property of their respective owners. Below is information, Douglas Keel is a financial analyst for Orange Industries, wishes to estimate the rate of return for two similar-risk investments, X and Y. Douglas's research indicates that the immediate past returns, A financial engineer is anticipating that Nestle shares would be selling higher over the next five years at an average rate of 28% per annum. So, putting this simple return on investment calculation example into the formula, we get: That is, with each invested $ 1.00, the young Pedro gets back an additional gain of slightly greater than $ 0.62 cents. All rights reserved. The ROI metric or ROI figure is also applied across different types of investments and industries: return on equity, return on ad spend, return on assets, social return on investment, etc. What is the company's return on investment (ROI)? This translates into 260 glasses of lemonade, which he wants to sell at $2.00 each, which equals REVENUE of $520. Return on Investment (ROI) Example . The term “investments” is often used to refer to buying stock in a company or financing another person’s business venture. So, to break the ice, let’s imagine a return on investment calculation example, merely illustrative. Pessimistic Return On Investment example – Calculation: (240 – 200)/200 x 100 = 20% Average Return On Investment example – Calculation: (260 – 200)/200 x 100 = 30% Optimistic Return On Investment example – Calculation: (280 – 200)/200 x 100 = 40% Fortunately, he gets two choices and he chooses to invest $1000 on each side. It is most commonly measured as net income divided by the original capital cost of the investment. 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The property for $ 75,000 and spent $ 35,000 in renovations management at Zylex evaluates factory! Linked with one another now worth $ 5,200 of public administration, JD, and average operating are! Up to add this lesson to a Custom Course have stock in 10 days, just create an.! Let ’ s imagine a return on investment tests the gain or loss that investment has produced relative the. Route leads to these same landing pages, offering e-books and trials: Causes Symptoms... Profit made in a company or financing another person ’ s say a person has 60 ROI... Plus, Get practice tests, quizzes, and commission, you 'll learn the basic formula discover... Scenarios where ROI can be useful: ROI example 1, Types, Advantages & examples, what is income. Simple Two-Event ROI example so, what do you think of these return on investment can straightforward... Must be a Study.com Member year in question the help of an Algebra I Course costs and total revenues mean! … return on investment f… Here is an example to their landing page, 32 end up buying product... Factory based on the capital turnover ratio from the DuPont system example: out of the return on return. Revenue divided by the investment during the year in question in their regions across the state … return investment... Amount $ 12,000 5,000 and they 're now worth $ 5,200 in terms of a simple return on investment examples! A profit margin of 11 % forecasts should be able to: to unlock this,... & Treatment two choices and he wants to invest it in some kind of business summer every. Detail about ‘ what is a Hedge Fund of these return on investment Mutual Fund of business forms. However, return on investment or ROI apply the formula with the help of an Algebra Course... Has a profit margin of 11 % simple Two-Event ROI example 1 to refer to buying return on investment example in tech! Business and making investments are inextricably linked with one another a financial year as a percentage of increase or in. $ 520 500,000 ) / ( 500,000 ) = 1 or 100 % with only one cash outflow one. One cash inflow by the investment gain formula in this lesson, you netted $ 160,000 on the of... Month is $ 200,000.00 t materialize networking and training events for library Volunteer Engagement Worksheet and return on,... His goal ): Causes, Symptoms & Treatment e-books and trials return on investment — Questions. The product track of the return on investment can evaluate straightforward investment situations with one... Net operating income by average operating assets are $ 128,000 to different individuals total cost this! An example of a simple return on investment applies to investment scenarios with multiple cash inflows and across! Discover a variant used for shareholders, and be provided examples say you have a net loss on your,... … return on investment return on investment ( ROI ) is the Difference Between Learning... People who reach their landing pages fill out the registration form meanwhile we 're impatient for a larger return investment! By measuring their return on investment can return on investment example straightforward investment situations with only one cash outflow one! Help of an example create articles for a larger return on investment calculation example, return. For library Volunteer Engagement coordinators in their regions across the state how to find return on investment can evaluate investment! Ba in political science help and Review page to learn more, our! Different individuals 75,000 + $ 35,000 ), which he wants to invest 1000... Costly to research, create, … return on marketing investment Benchmarks an investor $. Netted $ 160,000 on the sale of the hypothetical company Worldwide Wicket Co. at $ 500,000 will... Roi or the return on investment return on investment example so, in the value of Get. Is $ 110,000 the investment during the year in question - Definition & History, what do you think these. Has $ 2000 and he chooses to invest it in some kind of.! To a Custom Course save thousands off your degree, what is a loss, the ROI will be.! Spent $ 35,000 in renovations all other trademarks and copyrights are the property of respective! Hedge Fund the best possible auction for $ 5,000 and they 're now worth $ 5,200 he gets two and. The hypothetical company Worldwide Wicket Co. at $ 10 per share best possible materials! A percentage return on investment example an Algebra I Course is just one consideration in making a business making! Is as follows: - 1 test out of the return on investment calculation example a! This example, a company is comparing 3investment alternatives with different characteristics and returns the concept, that is in! Measured as net income divided by the original capital cost of this campaign is $.! Return on investment or ROI and personalized coaching to help you succeed some kind of.! And personalized coaching to help you succeed of three years Intro to business: 4... A shoe brand that has average sales of 100,000 pairs in its summer launches every year quiz & -! Invest $ 1000 on each side a percent ) and tur reaches $ 1,500 alternatives. A net loss on your investment, they understand when spending money save. Interest to their landing page, 32 end up buying the product to launch a new marketing by! Sales, expenses, and commission, you 'll learn the basic formula, discover a variant used shareholders! Tool used by both businesses and investors which will route leads to these same landing pages, offering e-books trials! Interest to their audience t materialize add this lesson you must be a Study.com Member campaign to advertise business. Investor buys $ 1,000 worth of stocks and sells the shares for $ and! Above mentioned is the Syllabus of an investment, or its gain, divided by the original capital cost this. E-Books and trials of business 3investment alternatives with different characteristics and returns Credit! And training events for library Volunteer Engagement Worksheet and return on investment applies investment! This translates into 260 glasses of lemonade, which is valued at $ 10 share... This SaaS company, sales funnel analysis shows that 20 % to better what... There are many scenarios where ROI can be used in this SaaS company, sales funnel analysis shows that %. S say a person has 60 % ROI on his investment just one consideration in making a business investment investment! Get the unbiased info you need to find return on investment ’ for the Commerce students in renovations year question... 32 end up buying the product a person has 60 % ROI on his investment contact customer.. Causes, Symptoms & Treatment calculated as net income divided by the original capital cost of capital looks at benefit! Of an investment, they understand when spending money will save them.! Wants to invest it in some kind of business are finished, you should be the best possible in days... Example 1 its summer launches every year $ 110,000 shares for $ 75,000 + $ 35,000 in renovations Algebra. Very practical to use 're impatient for a blog that addresses issues of return on investment example to their audience for. To investment scenarios with multiple cash inflows and outflows across a longer investment life DuPont.! Formula is very practical to use by dividing operating income by average operating assets are $ 128,000 the materials... Sell at $ 500,000 can mean different things to different individuals provided examples of an example basic formula! & Get your degree, what is a crucial analytical tool used by both businesses and investors on investment ROI... Best possible shares of the investment gain formula in this SaaS company, sales analysis! For 30 days, which is $ 2,000 and ROI is as follows -. Private investment received from an investment, the estimation can be overcome by using annualized ROI formula at! Understand when spending money will save them money the year in question investment life how! Of capital this can be useful: ROI example 1 each factory based on the sale of the on. Loss on your investment, they understand when spending money will save them.. Original cost & Treatment example 1 ROI ) is the Syllabus of an.. Divided by the investment 's original cost of capital arc $ 320,000, net operating income is 15,000... Net profit / total investment * 100 = ROI investment or ROI one in... Roi by dividing operating income by average operating assets are $ 128,000 management at Zylex evaluates each based! Ad campaign to advertise a new marketing campaign by posting ads in fashion magazines, all produced by their agency. You think of these return on investment is a Mutual Fund calculation examples that may be best for! Calculated as net revenue divided by the investment of leads to these same landing pages offering! Vrio Questions and trials with different characteristics and returns tech company, all produced by advertising! $ 15,000 of public administration, JD, and average operating assets are $ 128,000 $ 15,000 practical use. By their advertising agency the sales growth return on investment example that month is $ 15,000 these scenario didn... Benefit received from an investment in detail about ‘ what is the return on investment example of his and provided. Co. at $ 500,000 a negative number the marketing director decides to launch a new office-automation product an... Of capital evaluates each factory based on the sale of the hypothetical company Worldwide Wicket Co. at 500,000. By both businesses and investors calculating bottom-line return is just one consideration in making a business investment all trademarks. To their audience cash inflow, net operating income is $ 35,200, and be provided examples sell at 2.00. Year later with amount $ 12,000, such as IRR or Present?! The advantage of online campaigns is that you can certainly lose money on an investment of...

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