Skip to Content
25 Need-To-Know Management Ratios
book

25 Need-To-Know Management Ratios

by Gerben Van den Berg, Paul Pietersma
July 2015
Beginner
192 pages
3h 20m
English
FT Publishing International
Content preview from 25 Need-To-Know Management Ratios

5

Return on investment

This chapter will:

  • Review the term ‘return on investment’
  • Explore its various derivative measures

The generic term ‘return on investment’ is one of the most important concepts in business finance.

Every dollar of assets can be matched to a dollar of funds provided by the financial markets. The providers of these funds need to be paid. Payment comes from the operating surplus (or profit) generated from the utilisation of assets. Return on investment measures operating surplus as a proportion of the underlying assets/funds required to generate that surplus.

If return on investment is equal to or greater than the cost of funds, then the business is viable. However, if return on investment (in the long term) is less than ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.

Read now

Unlock full access

More than 5,000 organizations count on O’Reilly

AirBnbBlueOriginElectronic ArtsHomeDepotNasdaqRakutenTata Consultancy Services

QuotationMarkO’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.
Julian F.
Head of Cybersecurity
QuotationMarkI wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.
Addison B.
Field Engineer
QuotationMarkI’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.
Amir M.
Data Platform Tech Lead
QuotationMarkI'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
Mark W.
Embedded Software Engineer

You might also like

Kennzahlen IFRS-Abschluss - Ratios IFRS-Financial Statements

Kennzahlen IFRS-Abschluss - Ratios IFRS-Financial Statements

Inge Wulf, Jeremy Wieland
25 Need-To-Know Management Models

25 Need-To-Know Management Models

Gerben Van den Berg, Paul Pietersma

Publisher Resources

ISBN: 9781292016429