Accounting

ROI (Return on Investment)

العائد على الاستثمار

📖 Definition

Return on Investment (ROI) measures the profitability of an investment as a percentage: (Gain - Cost) / Cost x 100. Used to evaluate business decisions, marketing campaigns, and capital expenditures.

In everyday Saudi accounting work, roi (return on investment) matters because it affects invoice accuracy, financial reporting, tax filing, or ZATCA compliance depending on the transaction.

📖 التعريف بالعربية

العائد على الاستثمار (ROI) يقيس ربحية الاستثمار كنسبة مئوية: (العائد - التكلفة) / التكلفة × 100. يُستخدم لتقييم قرارات الأعمال والحملات التسويقية والإنفاق الرأسمالي.

💡 Example

Investing SAR 50,000 in a marketing campaign that generates SAR 200,000 in sales: ROI = 300%.

استثمار 50,000 ريال في حملة تسويقية تولد 200,000 ريال مبيعات: العائد على الاستثمار = 300%.

When this term matters

Invoices

Use the correct term and value before issuing ZATCA-compliant invoices or credit notes.

Reports

Map it to the right account, tax field, or compliance report to avoid reconciliation gaps.

Compliance

Keep the Arabic and English meaning aligned when working with auditors, ZATCA, or customers.

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