ROI in practice
Our experts perform an ROI analysis for all the installations you are interested in exploring, so that you have a reliable estimate of the return on investment before you made your decision. We believe that it is important to factor in the payback period of an investment, rather than just the cost of the investment.
The payback period is a more reliable long-term indicator than investment costs alone. Calculating the payback period based on the total investment cost gives an indication of the long-term financial impact of the investments. Good investments can be recovered within a short amount of time by achieving higher capacities or reducing the number of employees required for the overall process.
ROI calculation
The formula for calculating the payback period is:
Payback period = Investment / Annual cash flow
The formula for calculating the return on investment is:
ROI = Expected returns / Investment costs
When considering an investment, the following key indicators should be taken into account:
- Change in old versus new situation respectively without and with investment;
- Change in capacity in numbers;
- Change in operator hours or total labour costs;
- Change in error margin / misproduction;
- Change in percentage of giveaway (applicable when minimum and maximum weight play a role in the process);
- Total investment costs.
Need help calculating the ROI?
Please get in touch. We would be more than happy to help you calculate the ROI and payback period of your potential investment.
Contact usAdd-ons to our services
As a system integrator, we always want to stay one step ahead of the competition. With products that not only provide better performance, but are also stable, safe and sustainable. This requires optimal maintenance of our installations, easy options for making upgrades and the flexibility to respond quickly and efficiently to changing market requirements. To achieve this, more is needed than good service. View the supplement to our services below.
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