8th January 2006, 12:30 PM
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Member
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Join Date: Jan 1970
Posts: 578
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Quote:
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Originally Posted by KennyVictor
While we're on the subject is a ROI of 120% a return of $120 on $100 invested or $220. I'm sure I've been picked up on this before but can't remember which way it should be. KV
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IMO, POT is the simpler to understand as it Profit On Turnover, e.g. Turnover = $1,000 with profit = $100 gives a POT of 10%.
OTOH, ROI can be defined in different ways, normally either as a return on investments or as a return on assets, therefore leading to different outcomes.
In racing terms it would mean the difference between investments (turnover) or bank (assets). |