What Does ROI Mean?

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Return on Investment

ROI is an abbreviation that stands for 'Return on Investment.' It is a financial metric used to measure the profitability of an investment. It is calculated by dividing the net profit of an investment by its cost.

ROI is a widely recognized and used abbreviation in the business and investment world. It is commonly used in financial reports, presentations, and discussions related to investments.

Fun Facts

ROI is not the only financial metric used to measure investment profitability. Other metrics include Internal Rate of Return (IRR) and Net Present Value (NPV).
ROI can be used to compare the profitability of different investments, even if they have different costs or durations.

Examples

The ROI of our latest marketing campaign was 150%, indicating a highly profitable return on our investment.
Before making any investment decisions, it's crucial to calculate the potential ROI to ensure a positive return on investment.

Related Acronyms and Abbreviations

NPV: NPV stands for 'Net Present Value,' a financial metric used to calculate the present value of future cash flows from an investment, taking into account the time value of money.
IRR: IRR stands for 'Internal Rate of Return,' a financial metric used to calculate the rate of return of an investment, taking into account the time value of money.

Quiz

What does the abbreviation 'ROI' stand for in investing?

What does the abbreviation 'IRR' stand for in investing?

What does the abbreviation 'NPV' stand for in investing?

What does the abbreviation 'EBITDA' stand for in business?

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