Return on Investment
From Wikipedia, the free encyclopedia
The term Return on investment can have several different meanings:
Finance: "Return on investment(ROI) rate of return (ROR), also known as 'rate of profit' or sometimes just 'return', is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested.
Similar financial measures with variations on how 'investment' is defined:
- Return on assets (ROA),
- Return on net assets (RONA),
- Return on capital (ROC)
- Return on invested capital (ROIC)
- Social return on investment (SROI) is a principles-based method for measuring extra-financial value (i.e., environmental and social value not currently reflected in conventional financial accounts) relative to resources invested. It can be used by any entity to evaluate impact on stakeholders, identify ways to improve performance, and enhance the performance of investments.
- Return on marketing investment (ROMI) is "the contribution attributable to marketing (net of marketing spending), divided by the marketing 'invested' or risked.
- Return on event (ROE) is a term used in event marketing, compared to rate of return ROR, also known as return on investment ROI, which is the ratio of money gained or lost on an investment.
- ROI for Information Technology is used to evaluate applications portfolios and information systems.
- Public ROI is used to evaluate initiatives in public sector.
Software:
- Shark ROI (Return on Investment) Software Tool is a product designed for use by sales teams with a prospective client to identify the potential benefits of a solution. Its main aim is to automate the creation of Return on Investment business cases for presentation and budget approval.