Return on investment: a measure comparing the return from an investment with its cost.
ROI relates an investment’s return to the cost or capital used to generate it and is often expressed as a percentage. The calculation needs a clearly stated basis, because organisations can use different definitions of return and investment. Comparing figures therefore requires checking the costs included, the measure of benefit and the time period covered. A return earned on capital employed is one accounting application of the idea. For practical decisions, a percentage is useful only when the assumptions behind it are understood and consistently applied.
In job listings
De Beers’s Finance Manager, Marketing role in London required reporting marketing investment KPIs and supporting evaluation of marketing effectiveness and return on investment. The role supported the use of ROI alongside other measures to evaluate marketing effectiveness. Search local jobs for “finance”.
