oboloo Glossary

Operating Return On Investment

oboloo Glossary

Operating Return On Investment

Operating Return on Investment (ROI) is a measure of financial performance that calculates the profitability of an investment or business venture relative to its cost. By dividing net income earned from operations by the total costs associated with conducting those operations, we can measure the return on investment of any given project or company. This metric is used to compare the efficiency and effectiveness of different companies or projects, helping businesses make more informed decisions about where to allocate their resources. ROI also serves as a benchmark for evaluating the success of strategic investments and providing insight into executives’ decision making.