return on investment
Gains versus costs
Return on investment measures profit or loss relative to the amount spent, expressed as a percentage or ratio.
In business, it evaluates whether an expenditure was worthwhile: The marketing campaign delivered a 300% return on investment.
The term extends beyond finance to any effort-versus-outcome calculation: What's the return on investment for learning a new language?
Often abbreviated ROI.
Positive return received
- yieldProduce or relinquish
- earningsMoney gained from work
- profitGain exceeding expenditure
- dividendsProfits paid to shareholders
payoff · benefit · appreciation · margin · surplus · revenue · income · proceeds
Standard of measurement
- benchmarkStandard for comparison
- ratioComparative numerical relation
- percentageProportion out of hundred
- indicatorSign revealing status
yardstick · gauge · calculation · formula · quantification · assessment · evaluation · index
Wealth used for investment
- equityImpartial treatment or ownership value
- ventureRisky new undertaking
- startupNew business enterprise
- expansionIncrease in scope
acquisition · merger · stakeholder · shareholder · portfolio · assets · funding · enterprise
Estimating future conditions
- modelingSimulating or demonstrating form
- projectionSomething that extends outward
- calculationMathematical problem-solving process
- spreadsheetTabular data organizer
regression · correlation · simulation · sensitivity · scenario · extrapolation · computation · quantitative
Productive without waste
- effectivenessSuccess in producing results
- productivityOutput relative to input
- optimizationMaximizing efficiency or performance
- outputWhat something generates
results · improvement · achievement · success · enhancement · progress · capacity · utilization
Of limited duration
- long-termLasting extended period
- horizonApparent earth-sky meeting
- maturityFull growth achieved
- durationLength of existence
holding period · quarterly · annual · compounding · cumulative · realized · unrealized · deferred
gain
Positive return received
dividends · payoff · benefit · appreciation · margin · surplus · revenue · income · proceeds · payout
metric
Standard of measurement
- benchmarkStandard for comparison
- ratioComparative numerical relation
- percentageProportion out of hundred
indicator · yardstick · gauge · calculation · formula · quantification · assessment · evaluation · index · standard
capital
Wealth used for investment
- equityImpartial treatment or ownership value
- ventureRisky new undertaking
- startupNew business enterprise
expansion · acquisition · merger · stakeholder · shareholder · portfolio · assets · funding · enterprise · growth
forecasting
Estimating future conditions
- modelingSimulating or demonstrating form
- projectionSomething that extends outward
- calculationMathematical problem-solving process
spreadsheet · regression · correlation · simulation · sensitivity · scenario · extrapolation · computation · quantitative · breakeven
efficiency
Productive without waste
- effectivenessSuccess in producing results
- productivityOutput relative to input
- optimizationMaximizing efficiency or performance
output · results · improvement · achievement · success · enhancement · progress · capacity · utilization · leverage
short-term
Of limited duration
duration · holding period · quarterly · annual · compounding · cumulative · realized · unrealized · deferred
- business financeaccounting, balance sheet, revenue stream, profit margin, budget
- business termsfranchising, revenue stream, board meeting, gross margin, markdown
- finance termsnet profit, gross profit, budget, credit, debt
- financial analysisprofit margin, net profit, gross profit, profitability, net income
- financialsincome, profit, earnings, net income, net profit
- investingstocks, stock, bonds, investor, investments
return on investmentcapital loss
Selling asset below purchase price
investment loss · financial loss · money pit · sunk cost · write-off
return on investmentwaste
Unwanted discarded material
resource drain · throwing money away · malinvestment · inefficiency · boondoggle
return on investmentgross revenue
Total earnings before expenses
gross income · capital expenditure · cost basis · gross receipts
return, invest, investment, returns, invested, investing, invests