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Return on Invested Capital ROI Relation .ROI relates income, or other performance measure to a companys level and source of financing Rol allows comparisons with alternative investment opportunities riskier investments are expected to yield a higher ROI .ROI impacts a companys ability to succeed, attract financing, repay creditors, and reward ownersReturn on Invested Capital ROI Relation •ROI relates income, or other performance measure, to a company’s level and source of financing •ROI allows comparisons with alternative investment opportunities •Riskier investments are expected to yield a higher ROI •ROI impacts a company’s ability to succeed, attract financing, repay creditors,and reward owners
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