Return on Investment (ROI) is a measure of how well your company is using its resources to generate revenue. It is calculated by dividing the total revenue generated by a certain product or service by the total cost of that product or service.
For example, if your company spent $1,000,000 to develop a new product and that product generated $2,000,000 in revenue, your ROI would be $2,000,000 / $1,000,000 = 2.
For a company to be successful, its ROI should be greater than 1. If your company's ROI is less than 1, it is losing money on every product or service it sells.
It can be difficult to calculate Return on Investment directly inside of Xero; that's where Causal comes in.
Causal is a modelling tool which lets you build models on top of your Xero data. You simply connect Causal to your Xero account, and then you can build formulae in Causal to calculate your Return on Investment.
Causal lets you build models effortlessly and share them with interactive, visual dashboards that everyone will understand.
In Causal, you build your models out of variables, which you can then link together in simple plain-English formulae to calculate metrics like Return on Investment. This makes your models easy to understand and quick to build, so you can spend minutes, not days, on your models.
When you're done, you can share the link to your model with stakeholders. They'll be able to view your model's outputs in a visual dashboard, rather than a jumble of tabs and complex formulae. The dashboards are interactive, letting viewers tweak your assumptions to see how they affect the model's outputs.
Causal lets you add visuals in a single click, letting you plot out graphs and distributions for metrics like Return on Investment.