ATOI Meaning and
Definition
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ATOI is an acronym that stands for "Annualized Turnover on Investment," which is a financial term used to measure the efficiency and profitability of an investment. It is a key indicator for evaluating the return on investment (ROI) of a business or project over a specific time period, usually expressed on an annual basis.
ATOI calculates the amount of profit generated by an investment relative to the amount of capital employed. It is derived by dividing the net profit before taxes by the total investment, and then multiplying the result by 100 to express it as a percentage. This metric helps investors assess how effectively their invested capital is being utilized and whether it is generating satisfactory returns.
A high ATOI percentage indicates strong profitability and efficient use of capital, translating into favorable investment prospects. Conversely, a lower ATOI suggests lower profitability relative to the invested capital, indicating less efficient use of resources.
ATOI is particularly valuable when comparing different investments or projects within the same industry or sector. It allows investors to identify the most cost-effective or lucrative opportunities among various investment options. By regularly evaluating ATOI, businesses can make informed decisions regarding the allocation of resources, strategic planning, and investment prioritization.
Common Misspellings for ATOI
- atyoi
- a6toi
- at6oi
- a5toi
- at5oi
- atkoi
- atoki
- at0oi
- ato0i
- at9oi
- ato9i
- atoji
- atooi
- atoi9
- ato8i
- atoi8
- a toi
- ato i
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