Friday, February 1, 2008

Return on Investment

Return on Investment is the amount of money that the owner of the capital can expect to obtain. This is particularly important for any people that are investing their money in a business whether he is the owner or only a shareholder. Actually the return of investment shows whether it is profitable to invest in a given industry or whether it is better to just deposit the money in a bank and earn an interest. See also Cash conversion cycle and in French: Formation finance