Friedlob G., Schleifer L. Essentials of Corporate Performance Measurement

John Wiley & Sons, 2002The most common way to evaluate the success of investments is by measuring the return on investment (ROI).ROI is a better measure of profitability and management performance than profit itself because ROI considers the investment base required to generate profit.
The primary objectives in this book are to:
Explain the meaning of ROI and its components
Describe the use of ROI to analyze performance and contribute to decision making
Describe various forms of ROI and how they are used to evaluate investment activities