Gross Margin Return on Investment (GMROI)

Measure the total revenue gained after covering the investment of making the sale.

Sales KPI Examples | Gross Margin Return on Investment

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.

Formula

Gross margin on sales/Average inventory value [at base cost]

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