Cash Return On Gross Investment (CROGI)

Posted in Finance, Accounting and Economics Terms, Total Reads: 1916

Definition: Cash Return On Gross Investment (CROGI)

This ratio conveys us how much cash flow it is generating as a result of its capital investments.

Like the name says, it is calculated as

CROGI = Gross cash flow after taxes / Gross Income

This ratio is used by the companies to understand how efficiently the money they invested in capital purchases is being used. Companies use this ratio to evaluate their performance & growth. The higher the ratio means the company is generating good revenues. However, lower ratios mean the investments are much higher than the revenues & the company needs to look into its business.

Various parameters like revenues, expenses, debt and taxes etc are used for calculations.

Browse the definition and meaning of more terms similar to Cash Return On Gross Investment (CROGI). The Management Dictionary covers over 7000 business concepts from 6 categories.

Search & Explore : Management Dictionary

Share this Page on:
Facebook ShareTweetShare on G+Share on Linkedin