The Enterprise and Economic Development Glossary a resource of the .network library

return on investment:

... ROI; .a measure of performance used to show a yield beyond that of original value from the acquisition or purchase and holding of an ownership in a property, operation, financial product or other item of possession.The website www.investopedia.com indicates that a calculated ROI is obtained when a ... benefit (return) of an investment is divided by the cost of the investment ... (source of quote also shows a return on investment formula) Wikipedia explains that ROR (Rate of Return) and rate of profit have the same meaning as ROI.

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The Enterprise and Economic Development Glossary a resource of the .network library

return on equity:

... ROE; .a measure of performance used to show how well an individual or enterprise made use of reinvested earnings for additional earnings generation. In this case equity means having a right to an asset or property or its market value less any claims against it. Reinvestment is that, such as dividends, interest, or profit, which streams from an investment but before actually taking possession the designated recipient releases it for purchase of more of the same. In some cases reinvestment earnings can reduce or delay taxes.

Business Dictionary.com has an explanation of return on equity that focuses a ration of owners' or shareholders' profitability as a percentage of net worth (information source page).

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