Return On Investment 
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ROI 
Accounting Valuation: Summary of Return On Investment (ROI). Abstract 
Accounting value Single period measurement Traditional income measure 
Return On Investment (ROI) is an accounting valuation method.
Because the numerator (Net Income) is an unreliable corporate performance measurement, the outcome of the formula for ROI must also be unreliable to determine success or corporate value. However the ROI formula still keeps showing up in many annual reports...
The degree to which ROI overstates the economic value depends on at least 5 factors:
FormulaNet Income / Book Value of Assets = ROI
(Better) alternative:
Net Income+Interest (1Tax Rate) / Book value of Assets = Return On Investment Book: Steven M. Bragg  Business Ratios and Formulas : A Comprehensive Guide Book: Ciaran Walsh  Key Management Ratios
T I P : Here you can discuss and learn a lot more about net project benefits and Return On Investment. Compare: EBIT  EBITDA  Economic Value Added  Earnings Per Share  Return on Equity  Net Present Value  Return On Net Assets  Return on Invested Capital  Relative Value of Growth 
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