A positive ROI means that net returns are positive because total returns are greater than any associated costs; a negative ROI indicates that net returns are negative: total costs are greater than returns.

Is a negative ROI good or bad?

Return on equity (ROE) is measured as net income divided by shareholders' equity. When a company incurs a loss, hence no net income, return on equity is negative. A negative ROE is not necessarily bad, mainly when costs are a result of improving the business, such as through restructuring.

What does it mean if you have a negative return on investment?

A negative return refers to a loss, either on an investment, a business's performance, or on invested projects. When an investor purchases securities with the goal of those securities appreciating but rather they decrease in value, the investor has a negative return.