return on investment
Sign in to saveAlso known as ROI, ROC, return on costs
ratio between the net profit and cost of investment resulting from an investment of some resources
Wikidata facts
- Subclass of
- financial ratio
- Part of
- investment
Show 3 more facts
- Commons category
- Return on investment
- short name
- ROC
- different from
- return on capital
via Wikidata · CC0
~9 min read
Encyclopedic overview
Return on investment (ROI) or return on costs (ROC) is the ratio between net income or profit to investment (costs resulting from an investment of some resources). A high ROI means the investment's gains compare favorably 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.
Purpose
Excerpted from Wikipedia’s “return on investment” article, available under the CC BY-SA 4.0 licence.