Return on investment
Return on investment (also well known by its acronym, ROI; hereinafter, ROI) is the ration that is used to evaluate the efficiency of an investment in finance and economics.
Definitions
According to Juran's Quality Handbook by Defeo (7th edition),
- Return on investment (ROI). The ratio of the estimated gain to the estimated resources needed.
According to the BABOK Guide (3rd edition),
- Return on investment (ROI, business analysis). A measure of the profitability of a project or investment.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Return on investment (ROI). An accounting measure of income divided by an accounting measure of investment. See also accrual accounting rate of return method.
