Refers to the value of the return that should be obtained through investment, that is, the economic return that an enterprise obtains from an investment activity. The English name is Return on Investment.

Return on investment (ROI)= (annual pre-tax profit/total investment) * 100%. It is a ratio used to measure the profitability of enterprises, and it is also a comprehensive index to measure the operating effect and efficiency of enterprises.

Extended data:

Economic concepts related to return on investment;

1, annual profit before tax

It is the taxable profit before the enterprise pays the income tax. According to the tax law, the taxable profit of an enterprise paying income tax refers to the balance of the total income of the enterprise after deducting costs and expenses in each tax year.

2. Total investment

It is a unique concept in the law of foreign-invested enterprises, which actually includes the registered capital paid or subscribed by investors and the loans of foreign-invested enterprises. This is similar to the restrictions imposed by many project companies on the minimum self-owned funds.

References:

Return on investment _ Baidu Encyclopedia