Return on investment (ROI) Definition Used to measure the efficiency with whichfinancialresources available to a company are employed by management. ROI is Calculated: Return on Investment (ROI) = Annual profit / Average amount Invested or
Before taking the leap into a new business investment, you want to know how likely you are to see returns. Will you get back what you give? Return on investment, or ROI, gives a quantifiable figure showing you the likely benefit of an investment. Here’s how it works. What is return ...
Define return on investment. return on investment synonyms, return on investment pronunciation, return on investment translation, English dictionary definition of return on investment. Noun 1. return on investment - the amount, expressed as a percentage,
To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or ratio. The return on investment formula is : ROI = (Net Profit / Cost of Investment) x 100 The ROI calculation is flexible and can be manipulated...
Return on Investment (ROI) Return on Investment (ROI)Return on investment (ROI) is a ratio which measures gain/income generated by an investment per dollar of capital invested. It is calculated by dividing the sum of income and capital gain of an investment by the cost of investment....
Barron’s Dictionary of Finance and Investment Terms (1985), for instance, includes long-term debt in its definition of “return on invested capital,” which it uses synonymously with ROI. When the company has no long-term debt, the measure becomes Return on Equity. MSN Money uses the same...
1. What Is Total Return? 2. What Is Simple Return? 3. What Is Compound Annual Growth Rate?Photo: Justin Lewis / Stone/ Getty Images Definition Return on investment (ROI) measures how profitable an investment is. Many times, it is expressed as a ratio or percentage. ROI provides a way...
Definition and Guide Return on Investment, ROI, is the money an investor in a business earns for the injection of financial capital. Any return is from the net profit the business makes and is a mark of the efficiency of investing capital in the venture....
Return on Investment, ROI, is the money an investor in a business earns for the injection of financial capital. Any return is from the net profit the business makes and is a mark of the efficiency of investing capital in the venture.
What Is ROI in Simple Terms? Basically, return on investment (ROI) tells you how much money you've made (or lost) on an investment or project after accounting for its cost. Is ROI Calculated Annually? ROI can be calculated over any period of time, but it's most commonly calculated on...