Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.


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 ?
ROI is a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination involving ROI and one or more businesses.
ROI Institute's ROI Certification Workshop is the most comprehensive resource for gaining knowledge, skills and resources to evaluate programs of all types -- including HR programs, Training and Development, Marketing and many others.
With recent market conditions bringing about aggressive pricing, an outdated "basic" storage system can now be replaced with a more robust, feature-rich solution where ROI can be realized in many areas.
Let me be the first to say that if Lenskold succeeds in his mission to convince everyone to calculate ROI based on this equation, he will have done us all an enormous favor.
ROI benefit: Valuable information technology (IT) resources traditionally have been tied up providing extensive support to a wide community of users for financial analytics and reporting.
In such an inconsistent, ill-planned application of training, there will of course be no ROI, and the employee is disappointed that there is no way to show his or her new skills.
Measuring ROI in Business Coaching: A Global Hotel Chain (Jack J.
Numerous organizations have used the Phillips ROI Methodology(TM) to measure the effectiveness of their HR and training programs, often justifying increases in budgetary resources.
Nearly 5 out of 10 use "anecdotal observations" or have "no program in place to measure ROI.
One of the more interesting discussion points noted that every significant project now required an ROI; and if the ROI was incomplete to the degree that it had to be resubmitted, the likelihood of management excepting the project decreased significantly.