Supply Chain Glossary - R

Supply Chain Glossary - R

return on investment (ROI) or ROI

A financial measure of the relative return from an investment, usually expressed as a percentage of earnings produced by an asset to the amount invested in the asset.

A financial measurement of how successful a company is in creating income for the owners of the organization. A comparison of the ROE with the ROA indicates the effectiveness of financial leverage employed by the firm. The measurement is calculated by dividing the net income by average owner's equity. See: return on assets (ROA).


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