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Dictionary by pitch.dog
Financial ratios & operating efficiency · Core

Return on investment

Also called: ROI

ELI5

Gain or return divided by investment cost under a stated method.

Used in conversation

“How are we defining return on investment in this deck?”

Pitch context

You will see “Return on investment” in financial models, budgets, board packs and investor materials when the discussion reaches financial ratios & operating efficiency.

Why it matters: In financial ratios & operating efficiency, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

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Sources & evidence · 5

Direct term-level sources and supporting source families.