What does roi mean Meaning and Definition
What does roi mean
Pronunciation
/ˈroʊ.aɪ/
Part of Speech
Abbreviation
Definition
Examples
- The company analyzed the ROI of their marketing campaign to determine its effectiveness.
- The investor calculated the ROI of her stock portfolio to assess her returns.
Synonyms
- Return on investment
- Profitability
Antonyms
- Loss
- Expense
Additional Information
ROI is a widely used metric in business and finance to evaluate the performance of investments, projects, and products. It helps investors and stakeholders make informed decisions about where to allocate resources.
The ROI formula is simple: ROI = (Gain from Investment – Cost of Investment) / Cost of Investment. This calculation provides a percentage return on the investment, allowing for easy comparison across different projects or investments.
Etymology
The term ROI originates from the early 20th century, derived from the phrase “return on investment.” It has since become a standard metric in financial analysis and decision-making.
Usage Notes
ROI is commonly used in business, finance, and economics to assess the viability and profitability of investments, projects, and products.
Cultural References
ROI has appeared in various TV shows, movies, and books, often used to explain financial concepts to a broader audience.
Idiomatic Expressions or Phrases
- “Get a good ROI on your investment”
Related Words or Phrases
- Return on equity (ROE)
- Return on assets (ROA)
Collocations
- high ROI
- low ROI
Frequency of Use
ROI is a commonly used term in business and finance, with a high frequency of use in professional and academic contexts.
Common Misspellings
- ROEI
- Return on invesment