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i360 | June 30, 2010

Quality vs RoI

Whenever Financial Analysts look at any business, the first indicator of the business is taken as Return on Investment. This parameter is a monetary multiple of the inputs, higher the RoI, more profitable the business would be. This understanding is applicable to  businesses in maturity stage as most of the costs have already been apportioned or written off, and the recurring costs are more of maintenance costs in nature.

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