September 2012
Intermediate to advanced
376 pages
6h 44m
English
Content preview from Key Performance Indicators (KPI)
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9
Return on investment (ROI)
Strategic perspective
Financial perspective
Key performance question this indicator helps to answer
How well are we generating sustainable profits?
Why is this indicator important?
Return on investment (ROI), also referred to as the rate of return or rate of profit, is a financial performance measure that is used to evaluate the efficiency of an investment (after or during the investment period) or to compare the efficiency of a number of different investments (before capital is allocated).
ROI is a calculation of the most tangible financial gains or benefits that can be expected from a project versus the costs for implementing the suggested programme or solution. In short, it is the ratio of money gained or ...
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