ROI

Definition

Return on Investment. 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.

Use ROI in a sentence

When deciding between two different investment opportunities, it is often advantageous to select the option that has the probability of producing a higher ROI.

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dead money gross yield