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Return on Investment or ROI is often viewed as a test of management's efficiency in using available resources. Regardless of the size of the company, capital is considered a scarce resource and should be used efficiently. The concept of Return on Investment can be applied not just to the company itself, but within the company to evaluate a subsidiary, a department or even an individual product. There have been a number of measures that leverage the concept of Return on Investment. Each of these measures or ratios is well suited to a particular situation. The three most common measures using the return on investment concept are: |