Entity: ROI
ROI, short for Return on Investment, is a financial metric used to evaluate the efficiency and profitability of an investment. It measures the ratio between net income or profit and the cost of the investment. A high ROI indicates that the gains from the investment are favorable compared to its cost.
ROI
Etymology
The term ROI is an abbreviation for 'Return on Investment'.
Definition
ROI, short for Return on Investment, is a financial metric used to evaluate the efficiency and profitability of an investment. It measures the ratio between net income or profit and the cost of the investment. A high ROI indicates that the gains from the investment are favorable compared to its cost.
Historical Context
The concept of ROI has been widely used in finance and business management to assess the performance of investments. It helps investors and businesses make informed decisions about allocating resources.
Cultural Significance
ROI plays a crucial role in decision-making processes across various industries. It is a key factor in determining the success and viability of investments.
Related Concepts
Other related concepts include Return on Costs (ROC) and various financial performance measures used in investment analysis.
See Also
A financial metric that measures the ratio between net income or profit and the cost of an investment, used to evaluate its efficiency and profitability.