2006-12-12 22:30:00 · 4 answers · asked by Manisha M 1 in Business & Finance ➔ Investing
Return On Investment - ROI
It measures performance and is used to evaluate the efficiency of an investment . To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.
formula:
ROI= (gain from investment-cost of investment)/cost of investment
If an investment does not have have a positive ROI, it probably shouldn't be pursued.
2006-12-12 23:14:45 · answer #1 · answered by T b 1 · 0⤊ 0⤋
ROI means return on investment. This is the counterpart of the most important ratio for evaluating a company performance ROA or return on asset. ROI is net income/assets and ROA is gross income/assets. ROA is also known as 'acid test ratio' for it's importance given above.
2006-12-13 12:06:57 · answer #2 · answered by Mathew C 5 · 0⤊ 0⤋
Return of Investement
2006-12-13 06:37:57 · answer #3 · answered by rajeev r 2 · 0⤊ 0⤋
It can either be a formal calculation of the return on investment or a subjective term regarding the payback.
2006-12-13 06:39:05 · answer #4 · answered by thkiabdks 2 · 0⤊ 0⤋