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

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

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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.

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Our company's CEO was fired when he revealed that he had spent a lot of money on an inefficient endeavor that returned very little profit and had a small ROI.

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gross yield dead money