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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 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.

References in periodicals archive ?
1(a), the general scaling based method can place ROI associated bits in the higher bitplanes by downshifting the bits of BG coefficients from Most Significant Bitplane (MSB) to Least Significant Bitplane (LSB), so that ROI coefficients can be coded firstly after the wavelet transform.
Calculating ROI of a synchronous replication solution is difficult since, if a disaster never happens and the replicated copy is never used, then no value is ever realized--reducing the replication solution to "insurance.
ROI benefit: Financial planning is more detailed, resulting in greater profitability due to increased understanding of an organization's financial health.
Once a record is established of these items and their value is defined, subtract the money spent on training from the value of the improvements in this area for your ROI.
Clearly, measuring ROI is one of the most critical challenges facing the public relations profession.
And with just a short amount of additional effort, where you adjust those assumptions to the actual realities of your specific environment, the ROI benefits both the vendor and the client.