What is indicated by calculating a company's return on investment?

Calculating a company's return on investment (ROI) primarily measures the efficiency of an investment relative to its cost. This financial metric expresses the gain or loss generated relative to the amount invested, providing a clear picture of how well the investment is performing. ROI is commonly used to assess the profitability of an investment, enabling comparisons between different investment opportunities. A higher ROI indicates a more effective use of capital and better financial performance.

Other options, while related to different aspects of financial analysis, do not specifically address the concept of ROI. The total market value of a company reflects the overall worth based on market capitalization, while the growth of cash flow over a fiscal year pertains to liquidity and operational performance. Net revenue after tax expenses focuses on profit measurement after accounting for taxes but does not relate directly to the investment performance calculation that ROI represents. Thus, option B distinctly encapsulates the purpose of calculating return on investment.