Cash Return On Gross Investment - CROGI

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DEFINITION of 'Cash Return On Gross Investment - CROGI'

A gauge of a company's financial performance that measures the cash flow a company produces with its invested capital. CROGI is calculated by dividing gross cash flow after taxes by gross investment. CROGI is important because investors want to see how effectively a company makes use of the money it invests in itself.

BREAKING DOWN 'Cash Return On Gross Investment - CROGI'

CROGI is one of numerous measurements that can be used to assess the value of a corporation. Other measurements include discounted free cash flow, economic value added, enterprise value, return on capital employed and return on net assets, to name a few. Each of these measurements is calculated using a subset of the numbers companies report in their financial statements, such as revenues, expenses, debt and taxes.

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