Return on investment (ROI)

RECENT NEWS
Forbes  Oct 14  Comment 
Big data has boomed and companies across all industries are buying into platforms and tools that allow them to capture, unify, analyze and ultimately put action to disparate sources of user or customer data. According to IDC’s big data forecast,...
MarketWatch  Oct 13  Comment 
Sheriff Rick Grimes, the hero of the hit zombie show ‘The Walking Dead,’ is the worst possible leadership role model, writes Brett Arends.
MarketWatch  Oct 9  Comment 
Health problems linked to cannabis could keep the legal-pot industry from taking off, writes Brett Arends.
Forbes  Oct 7  Comment 
In parts one and two of this series we looked at recent research into the importance of optimizing your IT investments. If you're thinking seriously about taking control of your IT investment, then here’s what you need to know...
Forbes  Sep 30  Comment 
Want to know if grad school will bring you a return on investment? Here's how to calculate it.
MarketWatch  Sep 25  Comment 
The Deepwater Horizon disaster may have done more damage to BP’s stock-market value than it did to the Gulf Coast economy, writes Brett Arends.
MarketWatch  Sep 18  Comment 
Hedge funds’ ‘secret sauce’ costs a fortune while generating mediocre returns, writes Brett Arends.
Forbes  Sep 16  Comment 
Several years ago, right after an economic downturn, I had kicked off a research project to determine the ROI a company could expect if they implemented a demand management system. Using historical shipment data to forecast demand does not work...
MarketWatch  Sep 12  Comment 
More money won’t solve the U.S. malnutrition problem. Instead, we need to change our national diet, writes Brett Arends.




 

Return on Investment, or ROI, is a financial metric used to gauge the relative performance of an investment. It is basically the percentage of the original investment that has been returned to the investor as profit.

At its most basic meaning, ROI is defined as:

Image:ROI1.png

Or, more simply:

Image:ROI2.png

Many companies invest their money based on the calculation of ROI.

ROI relation with CAPEX Return on Investment is often related with Capital Expenditure. Companies invest money based on two focus points. 1. Long Term ROI 2. Short Term ROI

Long Term ROI Its is often related to the long term asset collection by the company. The company invest their money and considers it as the asset.

Short Term ROI Companies focuses on initial gains for their investment.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki