Gross Margin Return on Investment (GMROI)
Measure the total revenue gained after covering the investment of making the sale.
Overview
Make sure that the ratio between inventory costs and product sales is around an acceptable level with the Gross Margin Return on Investment metric.
Reporting frequency
Monthly
Example of KPI target
120% GMROI
Audience
CEO, CFO, Sales Manager
Variations
Gross margin inventory ROI
GMROI
Gross margin return on inventory investment
Formula
Gross margin on sales / Average inventory value [at base cost]
Services
Role
C-Level
