return on investment (ROI)

return on investment (ROI) definition - business

return on investment (ROI)

A measure of the net income a firm's management is able to earn with the firm's total assets. Return on investment is calculated by dividing net profits after taxes by total assets. Also called rate of return, return on assets. Compare profitability ratio.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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