Return on investment: Difference between revisions
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(ROI) | (ROI). | ||
A measure of how much return is received - or expected to be received - compared to the investment made. | A measure of how much return is received - or expected to be received - compared to the investment made. | ||
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Definitions of both return and investment may vary, depending on the use to which the measure is put. | Definitions of both return and investment may vary, depending on the use to which the measure is put. | ||
For this reason - here as elsewhere - the basis of the calculation should be stated explicitly, for the avoidance of any doubt. | For this reason - here as elsewhere - the basis of the calculation should be stated explicitly and applied consistently, for the avoidance of any doubt. | ||
== See also == | == See also == | ||
* [[Accounting return on investment]] | * [[Accounting return on investment]] | ||
* [[Incremental cash flows]] | |||
* [[Internal rate of return]] | * [[Internal rate of return]] | ||
* [[Investment]] | |||
* [[Payback period]] | |||
* [[Return on assets]] | * [[Return on assets]] | ||
* [[Return on capital employed]] | * [[Return on capital employed]] | ||
* [[Return on equity]] | * [[Return on equity]] | ||
* [[ROIC]] | |||
[[Category:Financial_products_and_markets]] | |||
[[Category:Long_term_funding]] | |||
[[Category:The_business_context]] | |||
Latest revision as of 14:44, 8 October 2023
(ROI).
A measure of how much return is received - or expected to be received - compared to the investment made.
ROI is usually expressed as a percentage.
Definitions of both return and investment may vary, depending on the use to which the measure is put.
For this reason - here as elsewhere - the basis of the calculation should be stated explicitly and applied consistently, for the avoidance of any doubt.
