Articles for Glen Petersen
Return On Investment
Return on investment (ROI) is a financial calculation that indicates the degree to which benefits exceed the investment for a given project or initiative. ROI is applied to initiatives that utilize capital resources because unlike expenses, capital is used to acquire assets that have a longer term impact that will either help or hinder the organization as it operates in the future. The calculation of ROI is in the form of a ratio where benefits are in the numerator (top) and investment/costs are in the denominator (bottom). By itself, ROI is just a number.