roi

[mick56]

What is the correct way of stating ROI
i always thought for example that if over the course of a year you staked a total of £1000 and your return was £1200 then your roi = 20%
but on another racing site i have seen the above example being expressed as an roi of 120%.

[Street cry]

Yep what you refer to Mick ie the 20% is actually POI the profit on investment expressed as the net gain over the year.

ROI being the return ie 120% so the gross return in it's entirety before outlay is deducted.

Think of it as ROI total return on ivestment and POI = ROI minus total outlay. Hope this helps

[mick56]

Yep what you refer to Mick ie the 20% is actually POI the profit on investment expressed as the net gain over the year.

ROI being the return ie 120% so the gross return in it's entirety before outlay is deducted.

Think of it as ROI total return on ivestment and POI = ROI minus total outlay. Hope this helps

thanks street cry but when making up your annual accounts which is the correct way to express the fig POI looks good to me or is it just a matter of personal choice ?

[mathare]

You'll find a lot of people, myself included, will refer to what is actually profit on investment as ROI. It's a misnomer in effect but one that seems to be increasingly popular. As long as you know whether a 20% ROI is equivalent to 20% profit (good) or a 20% return (bad!) you'll be fine, and most tipsters tend to stick to one definition throughout.

[mathare]

thanks street cry but when making up your annual accounts which is the correct way to express the fig POI looks good to me or is it just a matter of personal choice ?There is no 'right' way of doing it. There's no governing body to decide on which way is correct or even preferable so it is very much a matter of personal choice. Pick one and stick with it.

[Street cry]

I much prefer POI which as Mat says some deem as ROI to add confusion. I'd stuck to POI if i was you.

[mick56]

I much prefer POI which as Mat says some deem as ROI to add confusion. I'd stuck to POI if i was you.

thanks will do that