Finance Acronyms: ROI and P&L

Learn the essential finance acronyms ROI and P&L to enhance your business vocabulary and impress your colleagues.

ROI stands for Return on Investment. It is a crucial metric used to evaluate the efficiency or profitability of an investment. A higher ROI indicates that the investment gains compare favorably to its cost.

P&L stands for Profit and Loss. A P&L statement, also known as an income statement, summarizes a company’s revenues, costs, and expenses during a specific period. The statement shows whether the company made a profit or a loss during that time. 

Understanding what ROI and P&L are helps you communicate more effectively in the business environment and make more informed financial decisions.