In finance and accounting, return on investment (ROI), or sometimes just return, is the ratio of money gained or lost on an investment relative to the amount of capital invested. ROI with regards to inventory, pertains to the amount received for a distressed sales of excess, or unused items compared to the amount spent for those items. Money gained or lost may be referred to as interest, profit/loss,  or net income/loss. The highest ROI in excess inventory distribution comes from companies who have sourced the excess sales internally with the help of innovative new web based sales products. ROI is usually given as a percent rather than decimal value.

ROI does not indicate how long an investment is held. In this article, “ROI” indicates an annual or annualized rate of return, unless otherwise noted.

Maximum Return on Investment is what we do. Let's face it, if you have excess inventory, it's money just laying there. Historically, manufacturers selling excess and overstock have taken a bath and returns were low. Easy Excess turns all of that around and places the seller firmly in control to sell their excess when they want, for what they want.

ROI is used to compare returns on investments where the money gained or lost — or the money invested — are not easily compared using monetary values. For instance, a $1,000 investment that earns $50 in interest generates more cash than a $100 investment that earns $20 in interest, but the $100 investment earns a higher return on investment.

• $50/$1,000 = 5% ROI

• $20/$100 = 20% RO

The initial value of an investment does not always have a clearly defined monetary value, but for purposes of measuring ROI, the initial value must be clearly stated along with the rationale for this initial value. The final value of an investment also does not always have a clearly defined monetary value, but for purposes of measuring ROI, the final value must be clearly stated along with the rationale for this final value.

Return on investment is a rate of profit or income (realized or unrealized). The return is sometimes adjusted for taxes in geographical areas or historical times in which taxes consumed or consume a significant portion of profits or income. Taxes are an expense which may or may not be considered when calculating ROI. Similarly, a return may be adjusted for inflation to better indicate its true value in purchasing power.

ROI is a measure of cash (or potential cash) generated by an investment, or the cash lost due to the investment. We are experts at getting the most cash for your excess assets. ROI measures the cash flow or income stream from the investment to the investor. Cash flow to the investor can be in the form of profit, interest, dividends, or capital gain/loss. Capital gain/loss occurs when the market value or resale value of the investment increases or decreases. Cash flow here does not include the return of invested capital.

To the right is a simple example of cash flow on a $1,000 investment.

Summary: overall rate of return

Maximize your company rate of return and ROI by taking the surplus and excess inventory sales in-house. Utilize Easy-XS.com to list your excess and receive what the market will bear as your product is exposed to buyers of wholesale products of all types. You retain control of the material and the return, and can triple the cash coming back to your organization. 

Rate of Return and Return on Investment indicate cash flow from an investment to the investor over a specified period of time, usually a year.

ROI is a measure of investment profitability, not a measure of investment size. While compound interest and dividend reinvestment can increase the size of the investment (thus potentially yielding a higher dollar return to the investor), Return on Investment is a percentage return based on capital invested.

In general, the higher the investment risk, the greater the potential investment return, and the greater the potential investment loss.