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.

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You should always try and get the best return on investment you can so that your time has paid off.

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We discontinued several product lines during the past year as the return on investment was insufficient to justify further production.

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RETURN ON INVESTMENT A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.

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