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Glossary / Lexicon

What is return on investment (ROI)?

12/09/2022 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS
ROI (Return on Investment) is a term used to measure the effectiveness of an investment or business. It is calculated as the ratio between the profit and the original investment amount. ROI can be considered as a type of return metric, as it is a measure of the profitability of the investment, and it can also be considered as an indicator of the effectiveness of a company's management.
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