The return on investment
Example: Return on investment measures profit relative to invested capital
Definition
"The return on investment" is a financial metric used to evaluate the efficiency or profitability of an investment by comparing the gain or loss generated relative to the amount of money invested. It helps entrepreneurs assess how well their capital is performing.
Etymology
The phrase "the return on investment" originates from basic financial terminology where "return" refers to the gain or profit from an investment, and "investment" comes from the Latin 'investire,' meaning to clothe or surround, metaphorically indicating putting money into something. Together, the phrase was popularized in business contexts to quantify financial performance.
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"The return on investment" appears in the Vocaplus list "English - Entrepreneurship - (A1-C2) - set 1", containing 110 commonly used words.
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