 return on investment return on investment 8 admin mon 10142019 1723 return on investment roi for the research initiative project comparison between the net income obtained or expected to be obtained relative to the cost of investments value of the assets devoted to their obtention the indicator evaluates the capacity of the initiative project to generate economic profits it measures its economic efficiency the calculation of the indicator is simple and enables a high level of comparability core quantitative return on investment  percentage of the net profit of an investment compared to the cost of the investment assets  income  revenue minus expenses assets  elements owned by or belonging to an organization which can be monterarily valued an asset can be 1 something physical such as cash machinery inventory land and building 2 an enforceable claim against others such as accounts receivable 3 right such as copyright patent trademark or 4 an assumption such as goodwill financial report there are two alternative methods the initiative project can decide to provide one or both 1 specific for health research initiatives calculate the percentage that health gains and wider economics gain represent relative to the investment in medical research with a lag between expenditure and outcomes adjusting for inflation and discounting at a rate of 5 more detailed information on how to calculate the ratio is provided in kpmg economic impact of medical research in australia 2018 2 general roi calculate the percentage that the income generated by the initiative represents respect to the value of its assets percentage with numerator and denominator output percentage annually annually althought the roi specific for health reseach can provide valuable economic and financial information its calculation might be difficult for some initiatives projects yes for the roi specific for health research extract from kpmg economic impact of medical research in australia 2018 p 42 available at  https aamriorgau wpcontent uploads 201810 economicimpactofmedicalresearchexecsummarypdf for the general roi also named as roce extract from bayer annual report 2018 p 103 available at  https wwwbayercom en bayerannualreport2018pdfx for more information on how to compute the roi specific for health research see kpmg economic impact of medical research in australia 2018 available at  https aamriorgau wpcontent uploads 201810 economicimpactofmedicalresearchexecsummarypdf ideally an initiative project should provide the roi specific for health research given the complexity of its calculation it can opt for the general roi if the first option is too demanding profitability 