Return on investment is the most common approach to incorporating an investment base into a performance measure. The conceptual appeal of ROI is based in part on the fact that it blends all the components of profitability (revenues, costs, investments) into a single number. ROI is often used as a comparative measure. While most experts agree on the importance of tracking ROI, it can be used in conjunction with other performance measures.

The DuPont method of profitability analysis further expands the ROI formula:

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