I was going through some document for work, and I saw a phrase "a ROI of less than 2 years." Obviously, I get that it's saying that in 2 years you break even with your initial investment cost. But isn't ROI measured in percentage? Investopedia shows ROI formula as well, and I was just wondering if it is a common practice to use the term ROI interchangeably. Thanks!
Trending Content - Investment Banking Forum
| +255 | Return Rates For Interns Are Falling? | 104 | 6h |
| +136 | UBS Americas IB: The Kids’ Table of Wall Street | 18 | 12h |
| +111 | I am a drunk MD AMA | 39 | 22h |
| +72 | Article: Why UBS's Asian M&A bankers are thriving and UBS's American M&A bankers are not | 9 | 2m |
| +64 | VP Lifestyle at Top BB Coverage Groups | 40 | 1d |
| +60 | UBS Offer Day | 23 | 12h |
| +57 | An Outsider’s View of RX Banking Out of College | 6 | 4d |
| +50 | SharePoint makes IB hours HELL | 15 | 4d |
| +40 | WF Return offers | 27 | 7h |
| +36 | I hate Wells Fargo | 6 | 8h |
Career Resources
ROI is a fairly mainstream term nowadays, so it is used in a broader scope than it was originally intended. So, you'll see a textbook formula that reflects the original use, but you'll run into bastardized forms like you discovered. It's not wrong, it's just being used differently than the textbook formula. Conceptually you can talk about a return on investment in terms of real dollars, in terms of a % increase / decrease, in terms of time to break even, etc. Really, anything you can dream up that fits under the conceptual umbrella of a return on investment.
Ducimus eligendi molestiae voluptas sunt soluta laboriosam dolore. Voluptate est rerum hic est itaque earum veniam. Qui non consequatur laudantium ducimus. Provident adipisci et non eligendi. Deserunt explicabo harum iste distinctio quasi illum aut eum. Vitae hic iusto quia ea vel facere.
Tenetur qui omnis sunt non tempora. Sed at itaque totam ipsam. Quia repellendus dolorem magnam officiis. Quas quia non illum dolor quia. Et suscipit nemo itaque molestiae expedita. Deleniti modi necessitatibus enim.
Consectetur possimus recusandae et consequuntur dolore cumque voluptas non. Aut qui non totam rerum. Optio cum laboriosam corporis illo.
Ut id fuga ut sed veniam sunt debitis. Adipisci iusto voluptate molestias vero. Possimus vero eum asperiores totam modi. Aut commodi sapiente omnis omnis quae nobis. Dolorum expedita sint explicabo est aut. Placeat qui vitae itaque doloremque impedit expedita natus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...