Rental Inventory - Cost History/ROI (Return on Investments)

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 between the Advanced and Leads section of the rental/accessory item.

The overall ROI is the number at the top. When you enter a date for your costs, you will get more information on each of those lines. We will give you the revenue for the year that matches the date on that cost entry as well as the ROI on that cost. See the example below:

In this example, we have 9 tables that we bought at once for $100/table. We rented one in 2021 for $8. So the total ROI is 8/(900+10) = 1%. The revenue for the year put into service was 0, so the ROI is 0/900 = 0%. We spent $10 on the tables in 2021, so while the revenue was $8, the ROI for the period is 8/10 = 80%.

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.

If you have 9 of an item, you would enter the cost for all 9 items in the cost history. This would then give you an accurate ROI.  

There isn't a lot of reporting for ROI. We show an overall figure in the Rental Statistics chart on the dashboard and then show the most information in the cost history area. 

In the Rental Statistics the ROI is based on the period selected for that chart, revenue for that period divided by cost for that period.  

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.
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