summing up an abbreviation is a shortening of a word or a phrase an acronym is an abbreviation that forms a word an initialism is an abbreviation that uses the first letter of each word in the phrase thus some but not all initialisms are acronyms
ROI, or return on investment, is a common business term used to identify past and potential financial returns. Managers and executives look to the ROI of a project or endeavor because this indicates how successful a venture will be.
DEFINITION of 'Return On Investment-ROI'. A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.ROI measures the amount of return on an investment relative to the investmentâs cost.To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio.The return on investment formula: In the above formula, Gain from Investmentâ refers to the proceeds obtained from the sale of the investment of interest.o calculate the return on his investment, he would divide his profits ($1,200 - $1,000 = $200) by the investment cost ($1,000), for a ROI of $200/$1,000, or 20%. With this information, he could compare the profitability of his investment in Slice Pizza with that of other investments.