return on investment

Thesaurus

Noun

1.return on investment - (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 paidreturn on invested capital, ROIcorporate finance - the financial activities of corporationrate of return - the amount returned per unit of time expressed as a percentage of the cost

Translations

Return on investment

(ROI)An economic indicator that is used to evaluate the effectiveness of an investment. It is calculated as the ratio of the amount gained or lost relative to the amount invested. Simple ROI analyses do not take the time value of money into account; dynamic ROI analyses recognize that the value of money changes over time.

return on investment

Return on investment (ROI)

Generally, book income as a proportion of net book value.

Return on Investment

The money that a person or company earns as a percentage of the total value of his/her/its assets that are invested. It is calculated thusly:

Return on investment = (Income - Cost) / Cost

Because it is easy to calculate the return on investment, it is a relatively popular measure of the profitability on an investment and can help in making investment decisions.

return on investment (ROI)

A measure of the net income a firm's management is able to earn with the its total assets. Return on investment is calculated by dividing net profits after taxes by total assets. Also called rate of return, return on assets. Compare profitability ratio.

Return on investment.

Your return on investment (ROI) is the profit you make on the sale of a security or other asset divided by the amount of your investment, expressed as an annual percentage rate.

For example, if you invested $5,000 and the investment was worth $7,500 after two years, your annual return on investment would be 25%. To get that result, you divide the $2,500 gain by your $5,000 investment, and then divide the 50% gain by 2.

Return on investment includes all the income you earn on the investment as well as any profit that results from selling the investment. It can be negative as well as positive if the sale price plus any income is lower than the purchase price.

return on investment

see RETURN ON CAPITAL EMPLOYED, RETURN ON SHAREHOLDERS' FUNDS.

return on investment (ROI)

A generic term to define a number of analytical tools for measuring the financial benefits of an investment, including cash-on-cash, internal rate of return, equity dividend,and financial management rate of return.

return on investment

noun

Synonyms for return on investment

noun (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

Synonyms

return on invested capital
ROI

Related Words

corporate finance
rate of return