Advanved GMROI Calculator

GMROI Calculator

GMROI Calculator

GMROI Calculator

Component Description
Gross Margin The difference between sales revenue and the cost of goods sold.
Average Inventory Cost The average cost of inventory over a specific period.
GMROI Gross Margin Return on Investment, a measure of a retailer’s ability to turn inventory into cash above the cost of inventory.
Formula GMROI = Gross Margin / Average Inventory Cost
Purpose Used to evaluate the profitability of inventory and measure the efficiency of inventory investments.

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