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.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Return on investment (ROI) is operating income divided by total assets. The ROI measures the profitability of a division relative to the size of its assets.
According to the INCOSE Systems Engineering Handbook (4th edition),
- Return on investment. Ratio of revenue from output (product or service) to development and production costs, which determines whether an organization benefits from performing an action to produce something (ISO/IEC 24765.5 fCd; ISO/IEC/IEEE 24765, 2010).
