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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The basic idea of ROI coding is that certain parts of the image that are of higher importance than others are encoded at higher quality than the background (BG) and are transmitted first or at a higher priority [1]-[5].
The better ROI bet, then, is to look closely at a bundled application suite for IP, particularly one that provides a migration path via open standards, including SIP.
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." If there is a disaster, then the ability to be back in production on the replicated copy of data in minutes or hours vs.
The time is right for ROI analyzers to begin playing a big role in IT decisions, industry observers say.
The second method of ROI measurement is simpler, but effective.
Income is a good measure when determining return on equity, but it may be inappropriate when measuring ROI. Interest is a financing issue and must not be confused with investing questions.
SM le Roi s'est dit confiant que le Roi Felipe VI, "grace aux qualites qu'il a heritees de votre illustre famille royale, a sa sagesse et sa clairvoyance, poursuivra les efforts que vous avez entrepris en vue de realiser davantage de progres et de developpement pour le peuple espagnol ami et contribuer au raffermissement des relations d'amitie et de cooperation afin de realiser les aspirations de nos peuples amis au progres et a la prosperite".
Given the importance of ROI for retailers in evaluating store design success, designers and manufacturers must strive for the same metrics.
Prior to the contract, Leiters has passed the ROi's rigorous onsite quality audit of its new Denver, Colorado 503B cGMP facility.
Sa Majeste le Roi Mohammed VI a recu, vendredi au Palais Royal de Rabat, plusieurs nouveaux ambassadeurs dans les missions diplomatiques du Royaume auxquels le Souverain a remis leurs dahirs de nomination.