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Term of the Day

Return on Investment (ROI)

The earning ability of assets measured as the ratio of the net income (profit less depreciation) to the average capital employed (or equity capital) in a company or project. Expressed usually as a percentage, return on investment is a measure of profitability that indicates whether or not a company is using its resources in an efficient manner. 

For example, if the long-term return on investment of a company is lower than its "cost-of-capital"(i.e. interest), then the company will be better off by liquidating (selling off) its assets and depositing the proceeds (money/ cash) in a bank. Also called rate of return or yield.

 ...........

Dear Friends,

You might be thinking ET Univ. was not around for a week.....actually S.G.B Amravati Univ. MBA students were busy with their exams, so I thought of giving them a break. More aspirants joining this blog is a happy feeling, more encouraging will be their participation in discussions through comments by way of their questions. 

"Knowledge and Love are the only things in this material world that Grow by sharing with others!"  

See you soon with some exciting marketing strategy discussion about the rise of Ghari Detergent versus Hindustan Unilever's Wheel. 


Regards




Comments

  1. govindJanuary 13, 2012 at 10:48 PM

    sir plz tell me what is the meaning of private equity firm?

    ReplyDelete
  2. govindJanuary 17, 2012 at 5:33 AM

    thanks sir give excellent information about private equity firm and i want to know about gilt fund.

    ReplyDelete
  3. The Super-Human Within!January 18, 2012 at 10:14 AM

    soon you will Govind...let us make Funhama successful first !

    ReplyDelete

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