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.

​ Was this Helpful? YES  NO 8 people found this helpful.

The ROI from crowdsource funding initiatives has proved to be much more attractive than the returns from other financial instruments.

​ Was this Helpful? YES  NO 11 people found this helpful.

Before deciding to embark on investing in a new division, the board of trustees wanted to know what the ROI would be in year, two years, and five years.

​ Was this Helpful? YES  NO 10 people found this helpful.

Show more usage examples...

Related Terms

Mentioned in these terms

Browse Definitions 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
gross yield dead money