InvestorWords.com

Return on Investment


Definitions (2)

1. ROI. A measure of a corporation's profitability, equal to a fiscal year's income divided by common stock and preferred stock equity plus long-term debt. ROI measures how effectively the firm uses its capital to generate profit; the higher the ROI, the better.

2. More generally, the income that an investment provides in a year.


Related Videos




Search for another term


Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z