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Return on Investment (ROI)Return on Investment ratio, measures of a company's profitability equal to the profit attributable to ordinary shareholders divided by the average ordinary and preferred capital plus long-term debt. ROI measures how effectively the firm uses its capital to generate profit; the higher the ROI, the better. The formula is the following:
= [attributable profit / average (ordinary capital & reserves + prefs & minorities + creditors,long + creditors,other + subordinated loans + insurance funds)] * 100
= [attributable profit / average (long-term capital + equity)] * 100
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