ROI (Return on Investment)

Intermediate 💰 Finance / Accounting

Definition

How much profit you make from an investment—the metric everyone cares about after spending the money.

Example Usage

The marketing campaign's ROI was only 2.5%, so we're scaling it back.

Origin

Financial metrics terminology from 20th century corporate finance

Fun Fact

ROI calculations are often chosen to make whatever decision was already made look good

Source: Financial analysis and investment terminology

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The correction of previously issued financial statements due to errors, fraud, or accounting policy changes—corporate speak for 'we messed up, never mind what we told you before.' It's never a good sign when a company announces one.

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aging report

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weakening

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materiality threshold

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💰 Finance / Accounting

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