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  •     QAD Glossary

  • Return on Investment
    The Return on Investment (ROI) KPI answers the following questions:
    How do investment returns compare to investment costs?
    Do expected returns outweigh the costs?
    Do the investment returns justify the costs?
    Do some investments use funds more efficiently than others?
    Most forms of ROI analysis compare investment returns and costs by constructing a ratio or percentage. In most ROI methods, if the ROI ratio is greater than 0.00 or the percentage greater than 0%, the investment returns more than it costs. When potential investments compete for funds, and when other factors between the choices are truly equal, the investment or business case scenario with the higher ROI is considered the better business decision.
    The return on investment ratio is calculated as:
    ROI = (NOPAT+ Interest Paid) / Total Assets
    NOPAT = Net Operating Profit After Tax
    Navigation
    The ROI for the Last 12 Months chart is linked to a grid that shows the ROI details.

    Navigation Overview for the ROI KPI
    ROI for the Last 12 Months Chart
    This chart shows the ROI metric for the last 12 months for the entity and currency type that you select from the parameter bar.
    Note: The source for this chart is the GL Report Line Fact table.

    ROI for the Last 12 Months Chart
    ROI for the Last 12 Months Grid
    This grid, which shows the amounts used to calculate the ROI ratio, contains the following columns:
    Fin Month
    Fin Month Name
    Formula
    Currency Type
    Entity Code
    NOPAT
    Interest Pain
    Total Assets
    ROI

    ROI for the Last 12 Months Grid