Your return on investment is exactly that: the amount of cash the money you invested is paying or returning to you. In other words, how hard is the money you invest working for you?
Understanding how much cash flow you’re making and what kind of ROI that cash flow represents helps you to know how hard your investments are working for you.
The whole reasoning behind focusing on cash flow is that you want your money working hard for you so that you don’t have to work hard for your money. If you have an investment making 4 percent ROI for you, then it’s not working very hard. If, you have one making you 50 percent ROI, well then you have a real team member.