roi
Noun: 1. Return on Investment: A financial metric used to evaluate the efficiency or profitability of an investment. It is calculated as the net gain (or return) from an investment divided by the cost of the investment, typically expressed as a percentage.
ROI is used to compare the profitability of different investments or to assess the performance of a single investment. * The marketing campaign had an impressive ROI of 150%. * Before approving the project, the board demanded a detailed forecast of the expected ROI. * Investors always look for companies with a high and sustainable ROI.
- "to calculate/measure ROI": To determine the return on an investment.
- It can be difficult to calculate the exact ROI on employee training programs.
- "ROI analysis": The process of evaluating the potential returns of an investment.
- A thorough ROI analysis convinced us to proceed with the software upgrade.
- Return (n): The profit or income generated by an investment.
- Rate of return (n): A similar financial ratio expressing profit as a percentage.
- ROE (Return on Equity) (n): A related metric that measures profitability relative to shareholders' equity.
- ROA (Return on Assets) (n): A related metric that measures profitability relative to total assets.
- Yield: The income return on an investment.
- Gain: A general term for profit or increase in value.
- Profitability: The degree to which a business or investment yields profit.
ROI is an initialism (an abbreviation pronounced as letters: R-O-I). It is most commonly used in business, finance, and marketing contexts. While the core calculation is (Net Profit / Cost of Investment) x 100, specific industries may use variations of the formula to suit their needs.
- (corporate finance) the amount, expressed as a percentage, that is earned on a company's total capital calculated by dividing the total capital into earnings before interest, taxes, or dividends are paid