Return On Investment [ROI]
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Tags: Investing
Categories: Finance
The ROI is a performance measure used to evaluate the efficiency of an investment in terms of the amount of return an investment yields relative to the investment’s costs; ROI = (Investment Payoff – Investment Cost) / Investment Cost.
Return On Investment (Wikipedia)
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Return on investment (ROI) or return on costs (ROC) is a ratio between net income (over a period) and investment (costs resulting from an investment of some resources at a point in time). A high ROI means the investment's gains compare favourably to its cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments. In economic terms, it is one way of relating profits to capital invested.
