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Return on Investment (ROI) Definition and Explanation PDF Download

Learn Return on Investment (ROI) definition in hrm with explanation to study “What is Return on Investment (ROI)”. Study return on investment (roi) explanation with HRM terms to review HRM course for online MBA programs.

Return on Investment (ROI) Definition:

  • Calculation showing the value of expenditures for HR activities.

    Human Resource Management by Robert L. Mathis, John H. Jackson



Return on Investment (ROI) Explanation:

Return on investment (ROI) is a proportion between net benefit (over a period) and cost of speculation (coming about because of a venture of certain assets at a point in time). A high ROI implies the speculation's increases contrast positively with its expense. As a presentation measure, ROI is utilized to assess the proficiency of a venture or to analyze the efficiencies of a few distinct speculations. In financial terms, it is one method for relating benefits to capital contributed. In business, the reason for the arrival on speculation (ROI) metric is to gauge, per period, paces of profit for cash put resources into a financial element so as to choose whether or not to attempt a venture. It is additionally utilized as a pointer to analyze various ventures inside a portfolio. The venture with the biggest ROI is typically organized, despite the fact that the spread of ROI over the timeframe of a speculation ought to likewise be considered.

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