What is return on investment (ROI)?

The earning power of assets measured as the ratio of the net income (profit less depreciation) to ...

	Friday, February 6, 2015 return on investment (ROI)   Term of the Day return on investment (ROI) The earning power of assets measured as the ratio of the net income (profit less depreciation) to the average capital employed (or equity capital) in a company or project. Expressed usually as a percentage, return on investment is a measure of profitability that indicates whether or not a company is using its resources in an efficient manner. For example, if the long-term return on... Learn more about this term   Friday Quiz Challenge Test your knowledge of this week's terms Question: Profit realized from the sale (disposal) of a capital asset, or from holding it during a period when its market value is increasing. Choose the Right Answer: (A) recovery (B) attribute (C) capital gain (D) balance sheet   Featured Article How Your Small Business Can Take Advantage of Cyber Monday Though consumer spending is expected to grow this year, the predictions for holiday sales are lower than last year's rate of growth, making it vital to seize ... Read this article   Voice Your Opinion What's the most fun thing you do at work?   Take us with you! Download the BusinessDictionary app today.
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